Companies Amended Act 2013. Presented at HEA, Dharvad

1. INDUCTION TRAINING PROGRAMME HEA,
DHARWAD
Steps in the Formation of a Public Limited
Company
Presented by
Yellappa V.
Assistant Professor
G.F.G.C.W. Holenarasipura

2. Definition:
• “A Company is an incorporated association,
which is an artificial person, created by law,
having a separate entity with a perpetual
succession and a common seal”. –Haney

3. Public Company: U/S 2(71) 2013
A Public company, under section 3 (1)(iv) of the Companies
Act means “a company which is not a private company”.
the features are:
 Permits transfer of shares
 Number of members: minimum 7 and maximum no limit
 Invites the public to subscribe shares through prospectus
 Must add ‘Ltd’ next to company name

5. I. Promotion Stage:
Functions of Promoters
1. Discovery of business idea or opportunity.
2. Detailed investigation
3. Approval of company name
4. Preparation of necessary documents
5. Appointment of professionals

6. II. Incorporation Stage:
Documents Required;
 Memorandum of association
 Articles of association
 Consent of proposed directors
 Statutory declaration
 Company name approval letter
 Payment of fees

7. Memorandum of Association Articles of Association

8. Statutory DeclarationCopy of Registrar’s letter approving company’s
name.

9. List of Directors

11. III. Capital Subscription Stage:
SEBI approval
Filing of prospectus
Appointment of Bankers, Auditors, Brokers,
Company Secretary
Minimum Subscription
Application to Stock exchange
Allotment of shares

12. IV. Commencement of Business Stage

14. Identify the truthfulness of the
statements
1. It is necessary to get every company incorporated,
whether private or public.
2. A private company can commence business after
incorporation.
3. Experts who help promoters in the promotion of a
company are also called promoters.
4. If a company is registered on the basis of fictitious
names, its incorporation is invalid.

15. Assignments:
 Collect the names of any 5 promoters and the
companies promoted by them.
 Collect and paste logos of 10 public limited
companies.
 Write the taglines of nationalized banking
companies.

16. References:
1. Indian Corporate Law by B.S. Raman United
Publishers
2. Company Law and Secretarial Practice by
Dr. Siddappa O. Halasagi andDr. Sadashiva
O. Halasagi Sri Siddalinge