Skip to content

CMA Final · Corporate and Economic Laws · Company Formation and Conversion

Gomti Dairy Ltd, a company registered under the Companies Act, 2013, decides to convert itself into a company of another class by altering its memorandum and articles. Who closes its former registration and issues the fresh certificate of incorporation, and on what basis?

The Registrar closes the former registration and issues the new certificate of incorporation. He does so on the company's application, once he is satisfied that the registration provisions of the Chapter have been complied with. The Tribunal and Central Government are not involved in this ordinary conversion.

  1. AThe Registrar, on the company's application, after satisfying himself that the provisions of the Chapter applicable to registration have been complied withCorrect
  2. BThe Central Government, on its own motion, after the shareholders pass an ordinary resolution
  3. CThe Tribunal, by an order passed after hearing all creditors of the company
  4. DThe company itself, by filing an intimation, after which the former registration lapses automatically

Explanation

Under Section 18(2), the Registrar acts on an application by the company. He must first be satisfied that the registration provisions have been complied with. Only then does he close the former registration and issue a certificate in the same manner as the first registration. The Tribunal and the Central Government have no role in this ordinary conversion.

Did you get it right without looking?

One question tells you little. A timed set on Company Formation and Conversion shows your real accuracy, how long you take and where you lose marks.

Practise Company Formation and ConversionFree diagnostic mock

More Company Formation and Conversion questions