INCORPORATION

OF A COMPANY
AND MATTERS
INCIDENTAL
THERETO
PROMOTER

Promoter

Name is in prospectus Person is having direct or The person has control over
OR indirect control over the affairs BOD of company are bound to
Annual Records of the company do things the person says

*Exeption
Professional capacity excluded
Eg: CS,Lawyers
FORMATION OF
COMPANY
 Public Company Private Company OPC

OF COMPANY
FORMATION
Member subscribes his name into
7 or more ppl can form by 2 or more ppl can form by
memo alongside

A nominee's name, in event of DEATH

subscribing names to memo subscribing names to memo OR INCAPACITY of member, nominee
becomes member

& Complying requirements of this act & Complying requirements of this act Nominee's consent to be in written

Nominee may withdraw consent

NOMINEE -> MEMBER - > COMPANY -

> ROC
MINIMUM MEMBERS IN A
COMPANY
SEC 3(A)
 MINIMUM MEMBERS IN
IF Members in company go below

A COMPANY
SEC 3(A)
2 (PVT) Or 7 (PUBLIC)

If company carries on operation for more

than 6 months
AND
Every member is cognizant about the fact

The members are SEVERALLY LIABLE

for debts contracted after 6 months
from time in which no of ppl
is below 2 or 7