CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Equity and Procedural Aspects - Public Funding
Under section 25 of the Companies Act, 2013, an offer for sale document is made by a company that is the person making the offer. Who may sign it on behalf of the company?
Two directors of the company may sign the offer for sale document on its behalf. For a firm making the offer, signature by not less than one-half of the partners suffices, but that rule does not apply to a company.
- AAny one director of the company
- BTwo directors of the companyCorrect
- CThe Company Secretary alone
- DNot less than one-half of the partners in the firm
Explanation
Section 25(4) says that where the person making the offer is a company, it is sufficient if the document is signed on its behalf by two directors. The partners option applies to a firm, not a company.
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