Page 6 - Lesson Note 8

d. A public company

Question 6: Stages in the formation of a public company are in the following order

a. Promotion, Commencement of Business, Incorporation, Capital Subscription
b. Incorporation, Capital Subscription. Commencement of Business, Promotion
c. Promotion, Incorporation, Capital Subscription, Commencement of Business
d. Capital Subscription, Promotion, Incorporation, Commencement of Business

Question 7: Preliminary Contracts are signed

a. Before the incorporation
b. After incorporation but before capital subscription
c. After incorporation but before commencement of business
d. After commencement of business

Question 8: Preliminary Contracts are

a. binding on the Company
b. binding on the Company, if ratified after incorporation
c. binding on the Company, after incorporation
d. not binding on the Company

Home Assignment

VERY SHORT QUESTIONS 1 Mark Questions

Q.1 When a company is said to be born?

Q.2 Explain technical feasibility?

Q.3 Who is the first directors of the company?

Q.4 What do you mean by Formation of the company?

SHORT ANSWER QUESTIONS 3 & 4 marks Questions

Q.1 ‘Promoter enjoys a fiduciary position with the company’ Explain?

Q.2 List down some important documents needed for registration for incorporation.

Q.3 Define Promoter? Give a brief note