The appropriate sequence of the formation of a company are in the following order :
Promotion, incorporation, capital subscription and commencement of business
A public company passes through four stages before it can start business. Promotion comes first: promoters conceive the idea, examine its feasibility and arrange the documents and people needed.
Incorporation (registration) follows: the Memorandum, Articles and other documents are filed with the Registrar, who issues the certificate of incorporation, and the company becomes a legal person.
Capital subscription comes next: a public company issues a prospectus and allots shares once the minimum subscription is received. Commencement of business is the last stage, when the company becomes entitled to start operations (a certificate to commence business under the 1956 Act; a declaration under Section 11 of the Companies Act, 2013, in force in 2014).
Any order that starts with capital subscription or incorporation, puts promotion last, or leaves out capital subscription breaks this logical sequence.
Hence, Promotion, incorporation, capital subscription and commencement of business.
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Important Questions from The Companies Act
Arrange the following steps of incorporation of a new Limited Liability Partnership in proper sequence.
A. Reserve LLP Name
B. Preparation of Documents for Incorporation of LLP
C. Procure Digital Signature Certificate
D. LLP incorporation and DIN Application and apply for PAN and TAN
E. Drafting and filling LLP Agreement
Choose the correct answer from the options given below:- The maximum number of Partners in a Limited Liability Partnership can be :
- Which of the following is not true in the context of CSR?
- Which of the following provision of the Companies Act, 2013 identifies shares and debentures as a movable property?
- In which of the following case, the golden rule for framing prospectus was formulated by V.C. Kindersley?
A. Methodist Church v/s Union of India
B. R. v/s Registrar of Companies
C. New Brunswick Canada Railway Co. v/s Muggeridge
D. Jubilee Colton Mills Ltd. v/s Lewis
Choose the correct answer from the options given below:
