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CS Professional · Compliance Management, Audit and Due Diligence · Compliance Framework

A company secretary is advising on the Registrar's certificate for an existing company that applied for registration. The company has filed its documents but has not paid the fee payable under section 403. Which statement is correct under section 367?

The Registrar certifies registration only on compliance with the Chapter's requirements and payment of such fees, if any, as are payable under section 403. Filing documents without paying the applicable fee does not satisfy the condition, so the certificate cannot be insisted upon.

  1. AThe Registrar must issue the certificate because the documents are complete
  2. BThe certificate is issued on compliance with the Chapter's requirements and payment of fees, if any, payable under section 403Correct
  3. CThe company becomes incorporated automatically after thirty days
  4. DThe certificate is issued by the Central Government and not the Registrar

Explanation

Section 367 makes certification conditional on compliance with the Chapter's requirements and on payment of the fees, if any, payable under section 403. Unpaid fees mean the condition is not met. The certificate is issued by the Registrar, not the Central Government, and no automatic incorporation is provided.

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