CHAPTER 2 & 7

Minimum number of members to form a public company i

• 5

• 7

• 12

• 21

“Men may come and men may go but the company exist”- this explains which characteristics of the company as per companies Act 1956

• Separate legal entity

• Perpetual Succession

• Capacity to sue

• None of the above

Preliminary Contracts are signed

• Before the incorporation

• After incorporation but before capital subscription

• After incorporation but before commencement of business

• After commencement of business

A prospectus is issued by

• Private company

• Public company

• Public company seeking investment from public

• Partnership firm

Application for approval of name is made to

• SEBI

• Registrar of company

• Government of India

• Government of state in which company is registered

Preliminary Contracts are

• binding on the Company

• binding on the Company, if ratified after incorporation

• binding on the company after incorporation Company

• not binding on the Company,

It is necessary to get every company incorporated, whether private or public.

Statement in lieu of prospectus can be filed by a public company going for a public issue

Experts who help promoters in the promotion of a company are also called promoters.

f a company suffers heavy issues and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members