Page 57 - DCOM106_COMPANY_LAW

Company Law

Notes 4.9 Review Questions

1. Who is a promoter of a company? Discuss, citing legal cases, his legal position in relation
to the company he promotes.

2. What are the liabilities of promoters under the Companies Act, 1956?
3. Describe the various stages of incorporation of a public company limited by shares.
4. What documents are required to be filed for incorporation?

5. Discuss the nature and purpose of such documents.
6. What are the conditions; precedent to be complied with by a company for obtaining a
certificate to commence business? Are these conditions applicable to all classes of
companies?
7. Explain certificate of incorporation in detail.
8. Certificate of commencement of business in the case of a public limited company. Discuss.

9. “Promoters have been described to be in fiduciary relationship (relationship of trust and
confidence) with the company”. Discuss.
10. “A pre-incorporation contract never binds a company since a person cannot contract before
his (or its) existence and a company before incorporation has no legal existence”. Discuss.

Answers: Self Assessment

1. Promotion 2. fiduciary relationship
3. promoter 4. allottee
5. (c) 6. (b)

7. (c) 8. (a)
9. True 10. True
11. False 12. True
13. True

4.10 Further Readings

Books Aggarwal, Rohini (2003), “Student’s Guide to Mercantile and Commercial Laws,”
Taxmann’s, New Delhi.
Avtar Singh, Company Law, Eastern Publishers.
Begrail, Ashok K, Company Law, Vikas Publishing House, Delhi.

Kapoor, N.D, Company Law, Sultan Chand & Sons, New Delhi.
M.C. Kucchal ( 2002), Business Law, Vikas Publishing House Pvt. Ltd, Delhi.
P.C. Tulsian (2002), Business Law, Tata Mc. Graw Hill Pvt. Ltd, Delhi.
S S. Gulshan, Business Law, Excel Books, New Delhi, 2006.

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