Formation and promotion of a company - class-XI

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.

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.

A Company Secretary has extensive responsibilities regarding meetings, including preparation before, facilitation during, and documentation after the meeting.

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 Registrar of Companies 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 operating from offices in all major states of India

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.

The Board of Directors is responsible for the appointment of key personnel, including bankers, to manage the company's financial operations. Shareholders generally vote on major corporate actions, but day-to-day operational appointments are handled by the Board.

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.

 In corporate law, ultra vires describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause, articles of incorporation or in a clause in its Bylaws, in the laws authorizing a corporation's formation, or similar founding documents.

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.

MCA stands for Ministry of Corporate Affairs.

Generally company used to indulge in activities of trading of goods and services whereas club indulge in non trading activities.

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 correct matches of the groups are:

The seven regional registrar of companies are in charge of the respective regions each region comprising a number of States and Union Territories. They supervise the working of registrars of the companies in their region . They also maintain a liaison between the respective State government and the Central government in matters relating to the administration of the Companies Act.

The Company Law Board shall consist of such number of members, not exceeding nine, as the Central Government deems fit, to be appointed by that Government by notification in the Official Gazette

According to the Company Act 2013 , The Company Law Board has nine members.

The Company Law Board has set up six regional offices across the country to regulate different regions.

Chairman is the head of the company law board. Hon'ble Chief Justice Shri Mahesh Mittal Kumar is the Chairman at present. 

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 policies of a company are framed by the Board of Directors. The board of directors have a very defined role and responsibilities within the business organisation. The board has the responsibility of developing a governance system for a business i.e they make the policies of the organisation.

Shareholder is a person that owns shares of a company. They can be equity shareholders or preference shareholders. A person who purchases share of he company is called a shareholder.

According to Section 139 of the Companies Act 2013, every Company shall at the First Annual General Meeting appoint an Individual or firm as an Auditor who shall hold office from the conclusion of this meeting until the conclusion of sixth Annual general Meeting.

The Registrar of Companies is appointed by Central Government with the power vested under Section 396 of the Companies Act 2013 the Central Government registrar and additional, joint, deputy, and assistant registrars for various states and union territories in India. Apart from the primary companies incorporated in the respective states and the union territories, Registrar of Companies is also responsible for ensuring that the companies comply with statutory requirements under the said Act .

An auditor is the person who does the audit of the company. He makes the financial statements of the company. He communicates the audit results tot he company so that the company may know about the frauds and errors in the statement.

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

Promoter means a person—

Person who are authorized by board of directors are only authorized to operates company bank account.

Promoter means a person—

Unlimited liability refers to the legal obligations of general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.

True

Of the many business entities that owners consider, limited liability partnerships and limited liability company, company are the most popular which are created via process of incorporation.

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.