Statutory Lifting of Corporate veil

Statutory Lifting of Corporate veil

Section 45
Members severally liable for debts where business
carried on with fewer than seven, or in the case of a
private company, two members
Section 147 (Sec 12 2013)

Publication of name by Co.

(8) If any default is made in complying with the
requirements - the Co & every officer who is in default
shall be liable to a penalty of Rs. 1000 for every day
during which the default continues Not exceeding Rs.
1 lakh

Section 212 -213 (129 2013)

Balance-sheet of holding company to include certain particulars as
to its subsidiaries; Financial year of holding co & subsidiary
(3) Where a Co. has one or more subsidiaries - It shall, in
addition to financial statements P/U/SS (2) - Prepare a
consolidated financial statement of the Co. & of all the
subsidiaries in the same form & manner as that of its own which
shall also be laid before AGM along with the laying of its
financial statement U/SS (2)
PCo. shall also attach along with its financial statement, a
separate statement containing the salient features of the
financial statement of its subsidiary or subsidiaries
(4) Provisions
of T/A
to the preparation,
SS
PCG
may provide
for applicable
the consolidation
of accounts ofadoption
Cos
& audit of the financial statements of a HC shall, mutatis
Explanation - For the purposes of this SS, the word subsidiary
mutandis, apply to the consolidated financial statements referred
shall include Associate Co. & JV
to in SS (3).

Section 542 (339 - 2013)

Liability for fraudulent conduct of business
Declare that any person, who is or has been a director,
manager, or officer of the Co. or any persons who were
knowingly parties to the carrying on of the business in the
manner aforesaid shall be personally responsible - Without
any limitation of liability - for all or any of the debts or other
liabilities of the Co. as the Tribunal may direct
In Addition Every person who was knowingly a party to the carrying on of
the business in the manner aforesaid, shall be liable for action
U/S 447. (Punishment for fraud)
447 - Shall be punishable with
Imprisonment for a term which shall not be less than six months
but which may extend to 10 years
Shall also be liable to fine which shall not be less than the amount
involved in the fraud, but which may extend to 3 times the amount
involved in the fraud:

Sec. 453 Punishment for improper use of Limited or Private

Limited
That Person/Each of those persons shall unless duly
incorporated
with Ltd. Liability, or
as a Pvt. Co. with Ltd. Liability,
Punishable with fine which shall not be less than Rs. 500 but may
extend to Rs. 2000 for every day for which that name or title has
been used.

Steps to be taken to
incorporate a New
Company

Steps to be taken to get a New Co. incorporated

Steps to be taken to get a new company incorporated

Login to the portal & fill the following forms & attach the
mandatory documents listed in the e-Form

Additional Steps To Be Taken For Formation of A PLC

Commencement of business, etc. Sec. 11 (2013)

(1) Co. having a SC shall not commence any business or exercise any
borrowing powers unless A declaration is filed by a director in such form & verified in such
manner, with ROC that every subscriber to MOA has paid the
value of the shares agreed to be taken by him & the paid-up SC of
the Co. is Not less than
Rs. 5 lakh in case of a PLC &
Rs. 1 lakh in case of a Pvt. Co.
On the date of making of this declaration; &

(b) Co. has filed with ROC a verification of its RO as provided in

Sec. 12 (2).
(2) If any default is made in complying with the requirements of this
section, - Co. shall be liable to a penalty which may extend to Rs. 5000
&
Every officer who is in default shall be punishable with fine which
may extend to Rs. 1000 for every day during which the default
continues.

 (3) Where no declaration has been filed with

ROC- within a period of 180 days of the date of
incorporation of the Co. &
ROC has reasonable cause to believe that the
Co. is not carrying on any business or
operations, he may, without prejudice to the
provisions of sub-section
(2) Initiate action for the removal of the name of
the Co. from the register of Cos U/Ch. XVIII.
(Removal of names of Cos from the register of
Cos)