Advertisements
Advertisements
Question
Name the stages in the formation of a company.
Advertisements
Solution
The formation of a company is a complex process which involves various stages. The following are the sequential stages.
(a) Promotion: This involves taking the initiative to form a company and promoting it.
(b) Incorporation: This step involves the formation of the company as a separate legal entity.
(c) Subscription of capital: In this stage, funds are raised in the form of shares and debentures.
(d) Commencement of business: This stage implies the completion of the formalities and the commencement of business by the company.
APPEARS IN
RELATED QUESTIONS
Choose the correct option for the following
Minimum number of members to form a private company is
True/False Answer Question:
Statement in lieu of prospectus can be filed by a public company going for a public issue.
True/False Answer Question:
'Articles of association' is the main document of a company.
True/False Answer Question:
Every company must file Articles of Association
True/False Answer Question:
If a company suffers heavy issues and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members.
Select the correct answer from the options given below and rewrite the statement:
__________is a document which invites the public to buy the shares of a company.
Write a word or a term or a phrase which can substitute the following statement.
The Birth Certificate of a company.
To form a Public company, there must be minimum 2 persons/promoters.
State whether the following statement is True or False.
Promoters are persons who take the necessary steps to set up a company.
State whether the following statement is True or False.
DSC is needed by Directors when they have to sign documents for e-filing.
State whether the following statement is True or False.
ROC issues CIN only to certain companies.
State whether the following statement is True or False.
All companies need Certificate of Incorporation.
Find the odd one.
Complete the sentence.
On incorporation of a company, the ROC allots a unique identity number called as ______.
On behalf of a proposed company, preliminary contracts with third parties are entered by ______.
Select the correct option form the given option:
|
Group A |
Group B |
|
Promoters |
________ |
Select the correct option form the given option:
|
Group A |
Group B |
|
___________ |
Certificate of incorporation |
Select the correct option form the given option:
|
Group A |
Group B |
|
CIN |
_______ |
Study the following case/situation and express your opinion.
Mr. Ram, Mr. Sam, and Mr. Tom who are partners have come together to convert their business into a company. They have finalized all the details about the business they want to do, capital needed, etc. However, they do not know how to proceed with the legal formalities. Hence they appoint Mr. Shah who is a Practicing Company Secretary to help them prepare documents needed for incorporating the proposed company.
- Can Mr. Ram, Mr. Sam, and Mr. Tom convert their partnership firm into a company?
- Name 2 most important documents needed to incorporate a company.
- Will Mr. Shah be considered as a Promoter of the Company? Why?
