Company Promoters and Formation - Class XII

Expert do not become promoter, because they are assisting the promoters in various works or studies for which they charge fees. Hence experts who assists promoters in promotion of the company will not be called as promoters.

Public company is the company who has a minimum paid up share capital of Rs. 5 Lac. Hence, as prescribed by the Companies Act the minimum members to form a public company is 7.

The minimum number of members needed to form a private company is at least 2 members. The minimum number of members needed to form a Public Company is at least 7 members. The Maximum number of members in a Private Company is restricted to 200. The Public Company have no restriction on a maximum number of members.

Narayanmurthy and six software professionals founded Infosys in 1981 with an initial capital injection of Rs 10,000, which was provided by his wife Sudha Murthy. Narayanmurthy served as the CEO of Infosys for 21 years from 1981 to 2002 and was succeeded by co-founder Nandan Nilekani.

The Memorandum of Association (MOA) is the fundamental document of a company that defines its constitution, scope of activities, and relationship with the outside world.

1. Look At Your Business's Financial Statements.
2. Check Customer Satisfaction.
3. Average How Many New Customers You Get.
4. Conduct Performance Reviews.
5. Stay Current On The Market.
6. Assess Your Own Expectations
7. Current profits
8. 8. Long term growth

the principle of the separate legal personality of a company has become a vital part of company law.while the company legal relationships until that time had been principally based on transactions and activities between ‘natural’ or ‘real’ persons, namely human beings, from that time forward these legal relationships have been increasingly extended also to relations with company, as ‘legal’ personality. Thus, the principle of separate legal personality of a company has conjured up many practical as well as theoretical considerations about its application and correlated consequences

Registration of the company is optional not compulsory. One can start the business with other ways also rather than registering like acquiring tax license, service tax registration.

When an individual has an idea for a new business venture, he or she may set about interesting others in the venture and persuade them to contribute capital to a company to be incorporate for the purpose of carrying on the venture. The individual will then be described as ‘promoter’ of the company.

A promoter is a person who discovers the business opportunity. They are the people who conceives the idea of any business. They do all the work related to the incorporation, promotion, flotation and solicit people to invest the money in the company.

Share allotment letter is a document that details and confirms the amount or number of securities allotted to an applicant for a new issue or a rights issue.

After the documents for incorporation are filed, the ROC calls the attorney on a specific date for scrutiny and making the corrections in the MOA and AOA filed. 

Incorporation or registration is the second stage in the formation of a company. It is the registration that brings a company into existence. A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.

True

According to the Companies Act, a company is required to issue share certificates to allottees within two months from the date of allotment.

A  promoter is a  person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

According to Rule 36(13) of the Companies Incorporation Rules, 2014, the Certificate of Incorporation shall be issued by the Registrar in Form No. INC-11

The first directors of the company are usually appointed by the promoters in the manner laid down by the company's articles. The first directors can hold office only till the first annual general meeting of the company when they will be replaced by directors appointed by the company at this meeting.

Mandatory Company Registration. Hence, a business with any amount of turnover or capital can be operated as a Proprietorship or Partnership or Limited Liability Partnership or Private Limited Company. However, the Companies Act 2013, does require mandatory company registration

Companies Act 2013. An Act to consolidate and amend the law relating to companies. The Companies Act 2013  is an Act of the Parliament of India on Indian Company Law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.

A company seal (sometimes referred to as the corporate seal or common seal) is an official seal used by a company. Company seals were predominantly used by companies in common law jurisdictions, although in modern times, most countries have done away with the use of seals.

Infosys was conceived in 1981 in Pune by Narayan Murthy, Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora, all former employees of Patni Computer Systems. The company was started with meager initial capital of Rs 10,000 and was named Infosys Consultants. 

When a company issues shares to promoters for services rendered, the value of those services is typically capitalized as goodwill. Therefore, the Goodwill account is debited to record the asset, and the Share Capital account is credited.

The registration is compulsory for every company under the Company Act, 2013.

Promoters are those person who is among the first to explore or settle a new company hence they might be called as pioneers.

True

This statements is true,due to the following reasons:

The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act 1956 and Companies Act, 2013. There are currently 22 Registrars of Companies (ROC) operating from offices in all major states of India

The company is defined under which section 3(1). 

Promoter means a person—

Promoter means a person—

True

Certain fiduciary duties, like an agent, have been imposed on him under the Companies Act. As such he is said to be in & fiduciary position (a position full of trust and confidence) towards the company and the original allottee of shares. Consequently, a promoter must make full disclosure of the relevant facts, including any profit made.

Unlimited liability is not an advantage of incorporation.

False

A corporate promoter is a firm or person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.