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CS Executive · Setting Up of Business, Industrial and Labour Laws · Conversion of Business Entities

Under Section 374 of the Companies Act, 2013, which of the following is a listed obligation of a firm seeking registration as a company under that Part?

One listed obligation is to comply with such other conditions as may be prescribed. The section specifically requires secured creditors' consent, newspaper advertisements and a notarised affidavit, but it does not demand consent of unsecured creditors, a reduction in partners or stamp duty based on net worth.

  1. AComply with such other conditions as may be prescribedCorrect
  2. BObtain written consent of all unsecured creditors
  3. CReduce the number of partners to two
  4. DPay stamp duty equal to the firm's net worth

Explanation

Section 374(d) requires compliance with such other conditions as may be prescribed. The section does not require consent of unsecured creditors (only secured creditors), nor any reduction of partners or a stamp duty tied to net worth.

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