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CMA Intermediate · Business Laws and Ethics · Company Types, Promotion, Formation and Related Procedures

Under section 7(1)(c), each subscriber to the memorandum and each person named as first director must give a declaration. Which is one of the matters covered by this declaration?

The declaration states that the person has not been found guilty of fraud, misfeasance or breach of duty to any company during the preceding five years, nor convicted of offences in promoting, forming or managing a company, and that filed documents are correct and complete.

  1. AThat he holds at least ten percent of the share capital
  2. BThat he has not been found guilty of any fraud or misfeasance or breach of duty to any company during the preceding five yearsCorrect
  3. CThat he has never been a director of any other company
  4. DThat he is a resident of India for the previous twelve months

Explanation

Section 7(1)(c) requires a declaration that the person is not convicted of any offence in connection with promotion, formation or management of a company, or found guilty of fraud, misfeasance or breach of duty during the preceding five years, and that the filed documents are correct, complete and true.

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