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According to Section 4(3) of the Companies Act, 2013, when can a company use a word that gives the impression of a connection with the Central Government?
  • a)
    Only with the approval of the State Government.
  • b)
    Only with the approval of the local authority.
  • c)
    Only with the approval of the Central Government.
  • d)
    Only with the approval of the shareholders.
Correct answer is option 'C'. Can you explain this answer?
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According to Section 4(3) of the Companies Act, 2013, when can a compa...
Explanation:

According to Section 4(3) of the Companies Act, 2013, a company can use a word that gives the impression of a connection with the Central Government only with the approval of the Central Government. Let's understand the reasoning behind this.

Companies Act, 2013:
The Companies Act, 2013 is an important legislation in India that governs the functioning and operations of companies incorporated in the country. It provides guidelines and regulations for various aspects of a company's activities, such as incorporation, management, accounts, shareholders, etc.

Section 4(3):
Section 4(3) of the Companies Act, 2013 specifically deals with the usage of certain words in the name of a company. It states that a company cannot use a word that gives the impression of a connection with the Central Government unless it has obtained the approval of the Central Government.

Reasoning:
The reason behind this requirement is to avoid any potential confusion or misrepresentation regarding the relationship between the company and the Central Government. The usage of such words may lead people to believe that the company is directly associated with the government or has some special privileges or endorsements from the government, which may not be the case.

Approval of the Central Government:
To ensure that companies do not misuse or misrepresent their association with the Central Government, the Act mandates that any company wishing to use such words must obtain the approval of the Central Government. This approval process allows the government to assess the legitimacy and appropriateness of the company's proposed name and ensure that it does not create any false impressions or mislead the public.

Other options:
The other options provided in the question, such as approval from the State Government, local authority, or shareholders, are not relevant in this context. The requirement for using words that give the impression of a connection with the Central Government specifically pertains to obtaining approval from the Central Government.

In conclusion, according to Section 4(3) of the Companies Act, 2013, a company can use a word that gives the impression of a connection with the Central Government only with the approval of the Central Government. This requirement is in place to prevent any misleading or false representations and to ensure transparency in the relationship between the company and the government.
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According to Section 4(3) of the Companies Act, 2013, when can a compa...
Section 4(3) states that a company cannot use a word suggesting a connection with the Central Government without the previous approval of the Central Government.
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According to Section 4(3) of the Companies Act, 2013, when can a company use a word that gives the impression of a connection with the Central Government?a)Only with the approval of the State Government.b)Only with the approval of the local authority.c)Only with the approval of the Central Government.d)Only with the approval of the shareholders.Correct answer is option 'C'. Can you explain this answer?
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According to Section 4(3) of the Companies Act, 2013, when can a company use a word that gives the impression of a connection with the Central Government?a)Only with the approval of the State Government.b)Only with the approval of the local authority.c)Only with the approval of the Central Government.d)Only with the approval of the shareholders.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about According to Section 4(3) of the Companies Act, 2013, when can a company use a word that gives the impression of a connection with the Central Government?a)Only with the approval of the State Government.b)Only with the approval of the local authority.c)Only with the approval of the Central Government.d)Only with the approval of the shareholders.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to Section 4(3) of the Companies Act, 2013, when can a company use a word that gives the impression of a connection with the Central Government?a)Only with the approval of the State Government.b)Only with the approval of the local authority.c)Only with the approval of the Central Government.d)Only with the approval of the shareholders.Correct answer is option 'C'. Can you explain this answer?.
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