Ch#2 Cont. Formation Of A Company

Question 1

What are the steps of formation of a company?

Answer 1

Promotion
Incorporation
Subscription

Question 2

What are the functions of a promoter?

Answer 2

-Identification of business opportunities
-Feasibility:
1. Technical feasibility
2. Financial feasibility
3. Economic feasibility
-Name approval
-Signatories
-Appointment of professionals
-Documents:
-memorandum of association: (i)Name clause
(ii)Registered office clause
(iii)Objects clause
(iv)Liability clause
(v)Capital clause
-Articles of association
-Consent of directors
-Agreement

Question 3

Signed by a director or secretary is filed with the registrar of companies within 30 days of allotment is known as?

Answer 3

Return of allotment

Question 4

An application is made to at least one stock exchange for permission to deal in its shares or debuntures

Answer 4

Application to stock exchange