Site navigation

What is a legal consequence of incorporation of a company under the Companies Act, 2013?

Under section 9 of the Companies Act, 2013, a registered company becomes a body corporate. The company can own property, enter contracts, and sue or be sued in its own name.

Choose your answer

What is a legal consequence of incorporation of a company under the Companies Act, 2013?

Select one answer
Answer and explanation

Correct answer B

Under section 9 of the Companies Act, 2013, a registered company becomes a body corporate.

The company can own property, enter contracts, and sue or be sued in its own name.

Option feedback

Option A

Section 9 gives the company power to own property in its own name.

Option B

Section 9 makes the registered company a body corporate.

Option C

Incorporation under section 9 does not itself impose personal liability for every debt on every shareholder.

Option D

The company may sue or be sued in its own name under section 9.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic