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Comm CH 9 - Formation of A Company

formation of a company

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33 views10 pages

Comm CH 9 - Formation of A Company

formation of a company

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nikitacarolyn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER-9 FORMATION OF A COMPANY Stages involved in the formation of a company: FORMATION OF A COMPANY \ | ‘ Ke 4 | | | | | | | | | PROMOTION, | | COMMENCEMENT OF 1. Discovery of INCORPORATION CAPITAL SUBSCRIPTION, BUSINESS Idea (FLOATATION) 1. Copy of 2. Detailed 1. Memorandum 1. Permission from prospectus Investigation of Association SEBI 2. Return 3. Assembling 2. Articles of Association 2. Appointment of of allotment 4. Financing PROMOTION: The ste} 3. Consent of directors 4.Undertaking to take - Qualification shares 5.Statutory declaration brokers, underwriters, etc. 3. Issue of prospectus 4. Application for listing 5. Allotment. 3. minimum subscription 4. Qualification Shares 5.permission For listing, 6.statutory Declaration ihe. steps which are taken to persuade a number of persons to come together for the zsiunechiacmnonateshe traghteaiea ee ess of ind ins + of organizing and planning the finances of @ ‘According to Prof. Haney, “promotion is the proces business enterprise under the corporate form.” steps involved in promotion: ith an idea to start some business either in g Ag a romoter starts Out i pl poited to in some existing lines of manufacture oy ially ex ‘new field which has not been commercial pusiness. He makes a preliminary investigation (0 find out whether it is worthwhile to make a Se Te make a detailed investigation of his ides withthe 2 he promoter needs t0 ‘assistance of many experts It wll help him to know whether the estimated income is adequate empensate the owner forthe risks and services. ied with the practicability and to cover the estimated costs and c« i jf the promoter is satist _-3ecAssembling: After a detailed investigation, ; profitability of the proposed concern, he starts assembling. Assembling means getting the mons to act as directors oF founders, arranging fOr support and consent of some other Pe QF a ccheathe patents, a suitable site forthe company, machinery and equipment and making contracts for filling the positions. ition: After assembling the proposition, the promoter Prepares 2 prospectus to present to public and to underwriters to persuade them to finance the cn pate 12) PROMOTER: A promoter is an individual, a firm, @.company, department who concelves the idea of exploiting a business opportunity,

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