Secretarial Practice · Class 11 Commerce
Ch 3Formation of a Company — Class 11 Secretarial Practice, concept-first.
The previous chapter, "Joint Stock Company," explained WHAT a company is — an artificial person, created by law, with a separate legal identity from its members. This chapter answers the natural next question: HOW does such a person actually come into existence? A company is not born the way a sole proprietorship or a…
Key concepts
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Certificate of Incorporation
The Certificate of Incorporation is the document issued by the Registrar of Companies, under Section 7 of the Companies Act, 2013, once it is satisfied that all the requirements for registering a company have been met.
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Chapter contents
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Overview
The previous chapter, "Joint Stock Company," explained WHAT a company is — an artificial person, created by law, with a separate legal identity from its members.
Meaning and Stages in the Formation of a Company
A joint stock company does not spring into existence the day someone decides to start one. Because a company is an artificial legal person, it can only be "born" in the manner the law prescribes, and…
Promotion of a Company
Meaning. Promotion is the first stage in forming a company, and in many ways the most creative one. It covers everything that happens between the birth of a business idea and the actual registration o…
Incorporation of a Company
Meaning. Incorporation (also called registration) is the legal act by which a company is formally brought into existence as a body corporate, separate from the persons who formed it.
Capital Subscription
When This Stage Arises. Capital Subscription is the stage at which a public company that wishes to raise funds from the general public invites the public to apply for its shares or debentures, by issu…
Commencement of Business
Meaning. Commencement of Business is the final stage in the formation of a company — the point at which the company becomes legally entitled to actually begin its business activities and to exercise i…
Role of the Secretary in the Formation of a Company
A Company Secretary is rarely appointed only after a company is already running — in practice, a Secretarial Practice professional (or a promoter acting with a Secretary's guidance) is closely involve…
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- Q8Explain the various stages in the formation of a company.Free
- Q9Explain the legal position of a promoter of a company.Free
- Q10Explain the provisions relating to Commencement of Business under the Companies Act, 2013.Preview
- Q11Discuss the role of the Secretary at each stage in the formation of a company.Preview