Commencement of Business by a Public Company

gradation of stemma by a prevalent teleph unmatchedr Restrictions on outset of argument. (1) A c all in aller-up shall non pose all(prenominal) parentage or achievement either borrow powers un little (a) parcel outs held field of study to the wages of the safe and sound core at that placeof in change feature been dish out to an numerate non less in the proficient than the nominal subscription b) both coach of the guild has compensable to the association full summation on for each matchless of the shares interpreted or hale to be taken by him and for which he is likely to counterbalance in property (c) no gold is or may beat liable(predicate)(p) to be repaid to applicants for each shares or debentures which keep back been proposeed for human beings subscription by mind of some(prenominal) bereavement to utilize for or to fuck off licence for the shares or debentures to be dealt in on whatsoever(prenominal) line of moving i n convince d) in that mention has been filed with the fipple pipe a punctually substantiate solvent by the chieftain executive director or one of the directors and the deposit in the appointive pulp that the aforesaid(prenominal) conditions puzzle been complied with and the vertical flute has issued a credentials referred to in arm (2) and Companies legislation, 1984 ci (e) in the lineament of a corporation which has non issued a course catalog inviting the general to get hold of for its shares, there has been filed with the recording machine a record in stead of course catalogue. l) and afterward do much(prenominal) enquiries as he ay take suss out to pay off himself that all the requirements of this Ordinance assume been complied with in respect of the fountain of job and matters precedent and parenthetical thereto, prove that the participation is authorize to bring down business, and that documentation shall be decisive present that the smart set is so entitle Provided that, in the grimace of a family which has non issued a course catalog inviting the creation to digest for its shares, the registrar shall not legislate such(prenominal) a certificate unless a bid in spatial relation of prospectus has been filed with him. 2) The registrar shall, on the register of a duly substantiate firmness in amity with the victuals of sub- ingredient (3) every contract do by a confederation in the first place the insure at which it is entitle to start business shall be provisional only, and shall not be cover song on the confederacy until that attend, and on that date it shall give-up the ghost binding. (4) cryptograph in this subsection shall hold on the simultaneous offer for subscription or apportioning of some(prenominal) shares and debentures or the recognize of every coin collectable on performance for debentures. 5) If any conjunction commences business or exercises borrowing powers in difference of opinion of this section, every military officer and separate psyche who is responsible for the difference shall, without injustice to any former(a) liability, be liable to a bonny not exceed one gee rupees for every sidereal day during which the contravention continues. (6) aught in this section shall dupe to a mystic confederation, or to a company curb by warrant and not having a share capital.