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Certificate To Commence Business: - Nature Of Company And Formation
Business Environment and Law-Nature Of Company And Formation
Certificate To Commence Business: - Nature Of Company And Formation
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Where the company has issued a prospectus – Section 149(1), it shall not commence business or exercise any borrowing powers unless:
Certificate To Commence Business:
Where the company has issued a prospectus – Section 149(1), it shall not commence business or exercise any borrowing powers unless:
1. Minimum subscription
2. Every director of the company has paid to the company.
3. No money is, or may become, liable to be repaid to the applicants.
4. Filed with the registrar a duly verified declaration by one of the directors or the secretary.
a. It has filed with the registrar a statement in lieu of prospectus;
b. Every director of the company has paid to the company on each of the shares taken or contracted to be taken by him.
c. Filed with the registrar duly verified declaration by one of the directors or the secretary.
Where the company has issued a prospectus – Section 149(1), it shall not commence business or exercise any borrowing powers unless:
1. Minimum subscription
2. Every director of the company has paid to the company.
3. No money is, or may become, liable to be repaid to the applicants.
4. Filed with the registrar a duly verified declaration by one of the directors or the secretary.
Where the company has not issued a prospectus Section
149(2) requires, that it shall not commence business or exercise its borrowing
powers unless:-
a. It has filed with the registrar a statement in lieu of prospectus;
b. Every director of the company has paid to the company on each of the shares taken or contracted to be taken by him.
c. Filed with the registrar duly verified declaration by one of the directors or the secretary.
Penalty:
every person at fault is liable to a fine upto Rs.5,000 for every day of default.
Tags : Business Environment and Law-Nature Of Company And Formation
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