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

Patel Textiles, an existing company formed under an earlier law, applies for registration under Part I of Chapter XXI of the Companies Act, 2013. It has complied with the requirements of that Chapter and paid the fees payable under section 403. It is a limited company. What must the Registrar certify under section 367?

The Registrar must certify under his hand that the applicant company is incorporated under the Companies Act, 2013 and, because it is a limited company, that it is limited. On this certification the company becomes incorporated under the Act.

  1. AThat the company is incorporated under this Act and that it is limitedCorrect
  2. BThat the company is incorporated under this Act, but without any statement on limited liability
  3. CThat the company has been converted into a public company
  4. DThat the company's earlier debts stand extinguished on registration

Explanation

Section 367 requires the Registrar, on compliance and payment of fees, to certify under his hand that the company is incorporated under this Act and, for a limited company, that it is limited. Thereupon the company is so incorporated. The option omitting limitation is incomplete for a limited company, and nothing in the section extinguishes debts.

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