CAF-4 · Chapter 20 · Question 9 of 15
Which of the following is a mandatory requirement for a public company to obtain a certificate of commencement of business?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The directors should have paid in cash to the company the full amount on each of the shares taken or contracted to be taken.
Explanation
For obtaining the certificate of commencement of business, a public company requires that the directors should have paid in cash to the company the full amount on each of the shares taken or contracted to be taken.
More Share capital and commencement of business MCQs
- Q11Which of the following companies is NOT required to obtain a 'Certificate of Commencement of Business' before starting its operations?
- Q12If a public company decides not to issue shares to the general public initially, what document must it file with the registrar before…
- Q13When a company issues different classes of shares (e.g., Class A and Class B), what is the statutory requirement regarding the voting…
- Q14What is the legal definition of 'Nominal share capital'?
- Q15A company decides to alter its share capital by consolidating 10 shares of Rs. 10 each into 1 share of Rs. 100. What resolution is…