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CA Foundation · Business Laws · The Companies Act, 2013

Vikram is the sole member of a one person company (OPC), Vikram Digital OPC Pvt Ltd. While incorporating it, he must take a specific step regarding succession. Which is correct?

Vikram must name one nominee in the memorandum, with that person's written consent. The nominee steps in as the member if Vikram dies or becomes incapable of contracting, ensuring the OPC continues rather than ending on his death.

  1. AHe must name a nominee in the memorandum, who becomes member if Vikram dies or is incapacitatedCorrect
  2. BHe must appoint two nominees, who act as joint members at once
  3. CNo nominee is needed because an OPC ends on the member's death
  4. DHe must nominate a company as the nominee

Explanation

An OPC must name another person as nominee in its memorandum, with that person's prior written consent. The nominee becomes the member if the sole member dies or becomes incapable of contracting. Only one nominee is needed, and it must be a natural person.

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