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Which of the following is not a method of creating a company?
- a)A written agreement made by the directors
- b)Registration under the Companies Act/Ordinance
- c)Act of Parliament
- d)None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which of the following is not a method of creating a company?a)A writt...
Creating a Company
Creating a company involves various methods and procedures. Let's discuss them below:
1. Written Agreement made by the Directors:
The written agreement made by the directors is not a method of creating a company. It is a legal document that sets out the terms and conditions of the company. This agreement is called the Articles of Association. It specifies the rules and regulations that govern the company.
2. Registration under the Companies Act/Ordinance:
Registration under the Companies Act/Ordinance is a legal method of creating a company. It involves the process of registering the company with the Registrar of Companies. The company is required to submit various documents such as the Memorandum of Association, Articles of Association, and other necessary documents.
3. Act of Parliament:
An Act of Parliament is a method of creating a company. In some cases, the government may create a company through an Act of Parliament. This is done to achieve a specific purpose such as the creation of a public utility.
4. None:
This option is incorrect as it does not provide any information or explanation. It is not a method of creating a company.
Conclusion:
From the above discussion, it can be concluded that the written agreement made by the directors is not a method of creating a company. The correct methods of creating a company are registration under the Companies Act/Ordinance and an Act of Parliament.
Creating a company involves various methods and procedures. Let's discuss them below:
1. Written Agreement made by the Directors:
The written agreement made by the directors is not a method of creating a company. It is a legal document that sets out the terms and conditions of the company. This agreement is called the Articles of Association. It specifies the rules and regulations that govern the company.
2. Registration under the Companies Act/Ordinance:
Registration under the Companies Act/Ordinance is a legal method of creating a company. It involves the process of registering the company with the Registrar of Companies. The company is required to submit various documents such as the Memorandum of Association, Articles of Association, and other necessary documents.
3. Act of Parliament:
An Act of Parliament is a method of creating a company. In some cases, the government may create a company through an Act of Parliament. This is done to achieve a specific purpose such as the creation of a public utility.
4. None:
This option is incorrect as it does not provide any information or explanation. It is not a method of creating a company.
Conclusion:
From the above discussion, it can be concluded that the written agreement made by the directors is not a method of creating a company. The correct methods of creating a company are registration under the Companies Act/Ordinance and an Act of Parliament.
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Which of the following is not a method of creating a company?a)A writt...
Method of Creating a Company
There are various methods of creating a company. However, out of the given options, option A is not a method of creating a company.
Registration under the Companies Act/Ordinance
Registration of a company under the Companies Act or Ordinance is one of the most common methods of creating a company. This method involves the following steps:
1. Choosing the type of company - The first step involves deciding on the type of company to be registered. The options include private limited, public limited, one person company, etc.
2. Choosing a name - The next step involves selecting a unique name for the company. The name should not be similar to any existing company and should comply with the naming guidelines laid down by the Companies Act.
3. Drafting the Memorandum of Association (MOA) - The MOA is a legal document that outlines the company's objectives, powers, and scope of activities.
4. Drafting the Articles of Association (AOA) - The AOA lays down the rules and regulations for the company's management and operation.
5. Filing the documents - Once the MOA and AOA are drafted, they need to be filed with the Registrar of Companies along with other documents such as the address proof, identity proof, etc.
6. Obtaining the Certificate of Incorporation - If the Registrar of Companies is satisfied with the documents, he issues a Certificate of Incorporation, which marks the formal creation of the company.
Act of Parliament
An Act of Parliament is another method of creating a company. In this method, the company is created by an Act passed by the Parliament. For example, the Reserve Bank of India was created by an Act of Parliament - The Reserve Bank of India Act, 1934.
Written agreement made by the directors
This method is not a valid method of creating a company. A company can only be created by complying with the provisions of the Companies Act or by an Act of Parliament. A written agreement made by the directors cannot create a company as it does not comply with the legal requirements for creating a company.
None
This option is not the correct answer as it is not a method of creating a company.
There are various methods of creating a company. However, out of the given options, option A is not a method of creating a company.
Registration under the Companies Act/Ordinance
Registration of a company under the Companies Act or Ordinance is one of the most common methods of creating a company. This method involves the following steps:
1. Choosing the type of company - The first step involves deciding on the type of company to be registered. The options include private limited, public limited, one person company, etc.
2. Choosing a name - The next step involves selecting a unique name for the company. The name should not be similar to any existing company and should comply with the naming guidelines laid down by the Companies Act.
3. Drafting the Memorandum of Association (MOA) - The MOA is a legal document that outlines the company's objectives, powers, and scope of activities.
4. Drafting the Articles of Association (AOA) - The AOA lays down the rules and regulations for the company's management and operation.
5. Filing the documents - Once the MOA and AOA are drafted, they need to be filed with the Registrar of Companies along with other documents such as the address proof, identity proof, etc.
6. Obtaining the Certificate of Incorporation - If the Registrar of Companies is satisfied with the documents, he issues a Certificate of Incorporation, which marks the formal creation of the company.
Act of Parliament
An Act of Parliament is another method of creating a company. In this method, the company is created by an Act passed by the Parliament. For example, the Reserve Bank of India was created by an Act of Parliament - The Reserve Bank of India Act, 1934.
Written agreement made by the directors
This method is not a valid method of creating a company. A company can only be created by complying with the provisions of the Companies Act or by an Act of Parliament. A written agreement made by the directors cannot create a company as it does not comply with the legal requirements for creating a company.
None
This option is not the correct answer as it is not a method of creating a company.
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Which of the following is not a method of creating a company?a)A written agreement made by the directorsb)Registration under the Companies Act/Ordinancec)Act of Parliamentd)NoneCorrect answer is option 'A'. Can you explain this answer?
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