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Question
Name the stages in the formation of a company.
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.
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Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Minimum 7 members | 1. Persons who conceive the idea of setting up a company |
| b) DIN | 2. Public company |
| c) Preliminary contracts | 3. Promoters |
| d) Fiduciary duties towards the company | 4. Eight Digit alphanumeric number |
| e) CIN | 5. Private company |
| 6. Unique number assigned to each Director | |
| 7. ROC | |
| 8. 21 digit alphanumeric code number | |
| 9. One Person Company | |
| 10. Contracts entered by Promoters with third parties |
Write a word or a term or a phrase which can substitute the following statement.
Term which refers to contracts entered into by Promoters with third parties on behalf of the proposed company;
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.
In India, companies have to be incorporated as per the provisions of Companies Act, 2013.
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.
A company can be registered even without submitting Memorandum of Association and Articles of Association.
State whether the following statement is True or False.
Every Director has to quote his DIN while giving his consent to be a Director of a company.
Complete the sentence.
On incorporation of a company, the ROC allots a unique identity number called as ______.
Select the correct option form the given option:
|
Group A |
Group B |
|
___________ |
Certificate of incorporation |
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.
a) Can Mr. Ram, Mr. Sam, and Mr. Tom convert their partnership firm into a company?
b) Name 2 most important documents needed to incorporate a company.
c) Will Mr. Shah be considered as a Promoter of the Company? Why?
Study the following case/situation and express your opinion.
Mr. Talong with his 5 friends have submitted all the necessary documents for incorporation of TRIM private limited company.
a) How many minimum promoters are needed to incorporate a private company?
b) When can TRIM Private limited company be said to have come into existence.
c) Name the two most important documents that must be submitted at the time of the Incorporation of a company.
Answer in brief.
State the contents of Certificate of Incorporation
