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Which section of the Companies Act, 2013, outlines the effects of registering a company and the creation of a separate legal entity?
- a)Section 3
- b)Section 9
- c)Section 447
- d)Section 10
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which section of the Companies Act, 2013, outlines the effects of regi...
- The correct answer is B: Section 9 of the Companies Act, 2013.
- This section specifies that upon registration, a company becomes a body corporate, distinct from its members.
- It attains perpetual succession, meaning it continues to exist regardless of changes in ownership.
- The company has the ability to own property, sue, and be sued in its own name, establishing it as a separate legal entity.
- This legal separation protects individual members from being personally liable for the company’s debts.
- This section specifies that upon registration, a company becomes a body corporate, distinct from its members.
- It attains perpetual succession, meaning it continues to exist regardless of changes in ownership.
- The company has the ability to own property, sue, and be sued in its own name, establishing it as a separate legal entity.
- This legal separation protects individual members from being personally liable for the company’s debts.
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Which section of the Companies Act, 2013, outlines the effects of registering a company and the creation of a separate legal entity?a)Section 3b)Section 9c)Section 447d)Section 10Correct answer is option 'B'. Can you explain this answer?
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