CORPORATE TRANSACTIONS AND CONVERSIONS

Prospectus requirements: a company cannot commence business until statutory conditions are met and shareholder approval obtained.

Preliminary contracts before incorporation are not binding on the company with promoters liable; provisional contracts after incorporation but before the certificate to commence business are unenforceable until entitlement to commence business. Conversion mechanisms cover private-to-public and public-to-private routes, company formation from existing businesses, and specific conversion paths for co-operative societies. A company issuing a prospectus cannot commence business or exercise borrowing powers until shares are fully allotted, directors have paid for contracted shares, no repayable money remains, and the verified declaration is filed; pursuit of objects outside the main object requires a special resolution.