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FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlier
involved in many illegal activities. The promoters furnished some false information and also suppressed
some material facts at the time of incorporation of the company. Some members of the public (not being
directors or promoters of the company) approached the National Company Law Tribunal (NCLT) against
the incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liability
of the members of the company shall be unlimited.?
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FAREB Limited was incorporated by acquisition of Fareb & Co., a partne...
Liability of Members of FAREB Limited

False Information and Suppression of Material Facts
- The promoters of FAREB Limited provided false information and suppressed material facts during the incorporation of the company.

Approach to NCLT
- Members of the public, who are not directors or promoters of the company, approached the National Company Law Tribunal (NCLT) regarding the incorporation status of FAREB Limited.

NCLT Order
- The NCLT is likely to pass an order directing that the liability of the members of FAREB Limited shall be unlimited.

Implications of Unlimited Liability
- Unlimited liability means that the members of the company will be personally responsible for all debts and obligations of the company.
- Members may have to use their personal assets to settle the company's debts.
- Creditors can pursue the personal assets of the members to recover outstanding dues.
- Unlimited liability can pose a significant financial risk to the members, as they may face financial ruin if the company fails to meet its obligations.

Conclusion
- The NCLT's decision to impose unlimited liability on the members of FAREB Limited serves as a deterrent against providing false information and suppressing material facts during the incorporation of a company. It highlights the importance of transparency and honesty in corporate dealings.
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FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.?
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FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.?.
Solutions for FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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