But the actual intention of the company’s directors behind such prospectus is to get funds from public. Therefore, the prima facie clear that is the directors has knowledge regarding such prospectus which is false. Thus, the petition under Section 482 of Criminal Procedure Code filed by the director has been quashed by the court in this case. The Red Herring Prospectus is not just an informational document – it also has legal implications. The information provided in the prospectus is considered a legal representation of the company to potential investors.