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.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
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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