Commencement of business barred until director files subscriber-payment declaration and registered-office verification, else penalties and registrar may remove name.

Companies with share capital may not commence business or exercise borrowing powers unless a director files a prescribed declaration within one hundred and eighty days confirming subscribers have paid for their shares and the company files verification of its registered office under section 12(2); noncompliance attracts a statutory penalty on the company and daily penalties on defaulting officers and permits the Registrar to initiate removal of the company's name if the company appears inactive.

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