The Companies Act of 2013 in India replaced which earlier act?

The Companies Act of 1956.

Fill in the blank: A company is considered a separate legal entity from its members, allowing it to ___, ___, and enter into contracts in its own name.

Own property, borrow money

What principle was established in the case of Salomon v. Salomon & Co Ltd regarding corporate identity?

The principle of corporate veil, which states that a company is a legal entity separate from its members.

True or False: In a limited liability company, members can be held personally responsible for the company's debts beyond their unpaid shares.

False. Members are only liable to the extent of their unpaid shares.

Riddle: I can own property and enter contracts, but I am not a person. What am I?

A company.

What is the significance of the common seal as per the Companies Act, 2013?

The common seal serves as the official signature of the company, used to authenticate documents.

Fill in the blank: Perpetual succession ensures that a company continues to exist regardless of changes in its ___ or ___ .

Membership, ownership

Describe the concept of 'lifting the corporate veil' in corporate law.

Lifting the corporate veil occurs in law.

• Judicial act disregards entity.

• Holds members personally liable.

• Used in specific circumstances.

Multiple Choice: Which of the following is NOT a type of company under the Companies Act, 2013? A) Public Company B) Private Company C) Charity Company D) One Person Company

C) Charity Company

What is the primary purpose of a Section 8 company under the Companies Act, 2013?

To promote charitable objects without distributing profits to members.

True or False: Any individual can incorporate a One Person Company (OPC) regardless of their nationality.

False. Only an Indian citizen residing in India can incorporate an OPC.

Riddle: I am a document that outlines a company's objectives and powers but cannot be changed easily. What am I?

The Memorandum of Association.

Explain the difference between subscribed capital and paid-up capital.

Subscribed capital vs. paid-up capital.

• Subscribed capital is claimed shares.

• Paid-up capital is fully paid amount.

• Important for financial health assessment.

Fill in the blank: The doctrine of indoor management protects outsiders by allowing them to assume that all internal ___ have been followed.

Formalities

What legal principle was established in the case of Salomon v. Salomon & Co Ltd regarding the corporate veil?

A company is a separate entity.

• Protects shareholders from debt.

• Defines corporate personality clearly.

• Reinforces legal liability limits.