Pdf Chapter 11 A Reexaminations Introduction
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This chapter explains the process of forming a company, including the stages of promotion, incorporation, and subscription of capital.
It covers the role of promoters, the contents of the Memorandum and Articles of Association, and the steps for issuing a prospectus and allotment of shares. The chapter also discusses the distinction between a private company and a public company, along with the legal requirements under the Companies Act. These notes summarise key concepts from Chapter 7 of the NCERT textbook Business Studies for effective revision. You can also download the free PDF for quick reference. Explore Notes of Class 11: Business Studies The formation of a company is a complex activity involving the completion of several legal formalities and procedures.
The process of formation includes three main stages: promotion, incorporation and commencement of business. Formation of a company requires a group of persons associated for a common objective. A company comes into existence only when it is registered under the Companies Act. Promotion is the first stage in the formation of a company. It involves the investigation of a business idea and its feasibility. A promoter is a person who takes the initiative to form a company.
The promoter conceives the idea, makes preliminary investigations, and assembles the necessary resources. Understand the role of the promoter, who plays an important role in the concept of promotion. The promoter plays a crucial role in the formation of a company. He is neither a trustee nor an agent of the company but occupies a fiduciary position. The promoter must act in the best interest of the company and disclose all material facts.
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It Covers The Role Of Promoters, The Contents Of The
It covers the role of promoters, the contents of the Memorandum and Articles of Association, and the steps for issuing a prospectus and allotment of shares. The chapter also discusses the distinction between a private company and a public company, along with the legal requirements under the Companies Act. These notes summarise key concepts from Chapter 7 of the NCERT textbook Business Studies for ...
The Process Of Formation Includes Three Main Stages: Promotion, Incorporation
The process of formation includes three main stages: promotion, incorporation and commencement of business. Formation of a company requires a group of persons associated for a common objective. A company comes into existence only when it is registered under the Companies Act. Promotion is the first stage in the formation of a company. It involves the investigation of a business idea and its feasib...
The Promoter Conceives The Idea, Makes Preliminary Investigations, And Assembles
The promoter conceives the idea, makes preliminary investigations, and assembles the necessary resources. Understand the role of the promoter, who plays an important role in the concept of promotion. The promoter plays a crucial role in the formation of a company. He is neither a trustee nor an agent of the company but occupies a fiduciary position. The promoter must act in the best interest of th...