Balbharti Maharashtra State Board Class 11 Secretarial Practice Important Questions Chapter 3 Formation of a Company Important Questions and Answers.
Maharashtra State Board 11th Secretarial Practice Important Questions Chapter 3 Formation of a Company
1A. Select the correct answer from the options given below and rewrite the statements.
Question 1.
Directors declaration form should be filed within ___________ days from the date of incorporation.
(a) 180
(b) 80
(c) 100
Answer:
(a) 180
1B. Write a word or a term or a phrase that can substitute each of the following statements.
Question 1.
ROC allows 21 digit numbers at the time of issuing Certificate of Incorporation.
Answer:
Corporate Identity Number
1C. State whether the following statements are True or False.
Question 1.
A company shall be formed for any lawful purpose.
Answer:
True
Question 2.
First Director of the company appointed by ROC.
Answer:
False
2. Explain the following terms/concepts.
Question 1.
TAN
Answer:
Tax Deduction and Collection Account Number is issued by the Income Tax Department to all persons who are responsible for deducting or collecting tax. It is a 10 digit alphanumeric code.
Question 2.
ROC
Answer:
Registrar of Companies is an authority as per the Companies Act, which can incorporate companies.
Question 3.
Company limited by Guarantee
Answer:
A company where members guarantee to contribute a certain amount of money either to the assets of the company, at the time of winding up of the company, or towards the cost of winding up of the company.
Question 4.
Fiduciary duty
Answer:
It means that a person has to act in good faith and trust which is put upon him by another person.
Eg. Promoters have fiduciary duties towards the company they are setting up. It means they have to act in a manner that protects and promotes the interest of the proposed company.
Question 5.
Prospectus
Answer:
It is an invitation to the public by the Joint Stock Company to subscribe to the shares of the company.
Private company issues “Statement in lieu of Prospectus” in place of ‘framing its own-‘Prospectus’.
3. Answer in brief.
Question 1.
State the steps in Commencement of Business.
Answer:
Commencement of Business: Public companies and private companies not having share capital can commence their business after getting an Incorporation Certificate. But, companies having share capital and which are incorporated after 2nd November 2018 have to obtain a Certificate of Commencement of Business.
Steps in Certificate of Commencement of Business:
(i) Filing of a declaration by Directors:
Every Director has to file a declaration along with the prescribed fees declaring that he has paid the value of shares agreed to be taken by him. Such declaration should be verified by Company Secretary or Chartered Accountant or Cost Accountant. Such declaration should be submitted within 180 days from the date of incorporation.
(ii) File verification of Registered Office:
The company has to also file verification of its registered office with the ROC.
(iii) Obtain license or approval from Sectoral Regulator:
Companies that propose to conduct banking business, insurance business, or proposed to be listed on Stock exchanges need to register with Sectoral Regulators like RBI, Securities and Exchange Board of India, etc. Such companies must submit approval received from Sectoral Regulator to ROC.
(iv) Commencement of business:
After filing the required documents, RQC issues the Certificate of Commencement of Business. Public and Private companies having share capital can now start their business or start the collection of capital. A public company can now issue a prospectus to invite the public for subscribing to its share capital.
Question 2.
Draw a flow chart of Steps in the incorporation of a company.
Answer:
Following steps are undertaken to incorporate a company:
Obtain Digital Signature Certificate (DSC)
↓
Register DSC in the name of Director with MCA
↓
Obtain Director Identification Number (DIN)
↓
Apply for Reservation of Name
↓
Finalize Memorandum of Association and Articles of Association
↓
Signing, Stamping, and Dating of Memorandum and Articles of Association
↓
Prepare other necessary documents
↓
Deciding address for communication
↓
Obtain a statutory declaration
↓
Filing of application and documents for Incorporation with ROC
↓
Obtaining Certificate of Incorporation
Question 3.
State the various types of companies.
Answer:
(i) Based on a minimum number of promoters:
As per Company Act, 2013 (Section 3) Promoters can form 3 types of companies. Such types of companies are based on numbers of Promoters.
(ii) Based on Capital Structure [Section 3(2)]:
- Company Limited by Shares: In this type of company capital is formed by shares and the liability is limited.
- Company Limited by Guarantee: In this company, its members have guaranteed to contribute an amount of money either to the assets /of the company at the time of winding up towards the cost of winding up of the company.
- Unlimited Liability Company: In this company, the liability of members is unlimited, they are liable for all amounts of debts and liabilities.
4. Answer the following questions.
Question 1.
Give the proforma of Certificate of Incorporation.
Answer:
|
GOVERNMENT OF INDIA I hereby certify that ___________ is incorporated on this ___________ Day of ___________ Two thousand ___________ under the Companies Act, 2013 (18 of 2013) and that the company is limited by shares. The Corporate Identity Number of the Company is ___________ Digital Signature Certificate Disclaimer: This Certificate only evidences incorporation of the company on the basis of documents and declarations of the applicant (s). This Certificate is neither a license nor permission to conduct business or solicit deposits or funds from the public. Permission of sector regulators is necessary wherever required. Registration status and other details of the company can be verified on www.mca.gov.in |
| Mailing address as per record available in Registrar of Companies office: ______________________ ______________________ |