Which of the following is most essential for a company?
The certificate of incorporation certifies the event that brings the registered company into existence. Under sections 34 and 35 of the 1956 Act, registration creates the…
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Which of the following is most essential for a company?
Answer and explanation
Correct answer D
The certificate of incorporation certifies the event that brings the registered company into existence. Under sections 34 and 35 of the 1956 Act, registration creates the body corporate and the certificate is conclusive evidence of compliance with incorporation requirements. A memorandum is a required constitutive document, but it alone does not create a company; share capital and a prospectus are not universal requirements.
Current law: Companies Act 2013 sections 7(2) and 9 now govern the certificate and effect of registration. The date stated in the certificate marks corporate existence; section 7 also provides remedies concerning fraudulent incorporation.
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