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What is an ordinary legal effect of incorporating a company under the Companies Act, 2013?

Under section 9, registration gives a company a legal personality separate from its members. The company can own property, contract, and sue or be sued in its own name.

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What is an ordinary legal effect of incorporating a company under the Companies Act, 2013?

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Answer and explanation

Correct answer B

Under section 9, registration gives a company a legal personality separate from its members.

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

Option feedback

Option A

Incorporation creates a distinct legal person even though people act for the company.

Option B

Section 9 makes the company a body corporate capable of holding property, contracting, and suing or being sued in its own name.

Option C

The Act provides for qualifying schemes of merger or amalgamation.

Option D

Section 9 creates corporate personality and does not give this monetary exemption.

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