Multiple choice

A company enjoys status of a separate legal entity in which of the following cases?

  1. Issue of share certificates within three months after the allotment of shares

  2. Reduction of membership

  3. Formation of a subsidiary company to act as an agent

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A company enjoys status of a separate legal entity if it issues share certificates to its shareholders within three months after the allotment of shares according to Sec 113. The corporate veil is not lifted.