CS Executive · Setting Up of Business, Industrial and Labour Laws · Conversion of Business Entities
Mehta & Sons is a registered partnership firm in Pune. Its partners wish to carry on the same business through a company and, under the Companies Act, 2013, apply for registration under Part I of Chapter XXI (Part XXI) as a company. As part of the registration obligations in Section 374, what must be filed regarding the firm's own existence?
The company seeking registration must file an affidavit, duly notarised, from all members or partners stating that documents will be submitted to the earlier registering authority for dissolving the firm. The section demands unanimity of partners in the affidavit, not a majority resolution or a court order.
- AAn affidavit, duly notarised, from all the members or partners that necessary documents will be submitted to the authority with which the firm was earlier registered, for its dissolutionCorrect
- BA court order sanctioning the dissolution of the firm before the application is made
- CA no-objection certificate from the Income-tax Department only
- DA resolution by a simple majority of partners, without any affidavit
Explanation
Section 374(c) requires an affidavit, duly notarised, from all the members or partners that, on registration, documents will be submitted to the authority with which the entity was earlier registered for its dissolution. A simple majority resolution is not what the section requires, and no court order is mentioned.
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