With reference to the formation of a public limited company in India, consider the following steps:
1. Obtaining a certificate of commencement of business
2. Drawing up the Memorandum of Association
3. Drawing up the Articles of Association
4. Obtaining approval for the proposed name of company from the Registrar of the Companies
Which among the following is the correct order of the above steps?
 

Answer: [B] 4 2 3 1

A public company is defined as one, which is not a private company. In other words, a public company is one on which the above restrictions do not apply. Summary of steps involved in forming a company:

8    STEP 1 : START

8    STEP 2 : Obtaining approval for the proposed name of the company from the ROC

8    STEP 3 : Drawing up the Memorandum of Association

8    STEP 4 : Drawing up the Articles of Association

8    STEP 5 : Getting the appropriate persons to subscribe to the Memorandum (a minimum of 7 for a public company and 2 for a private company)

8    STEP 6 : Payment of Registration Fee to the ROC

8    STEP 7 : Receipt of Certificate of Incorporation

8    STEP 8 : Obtain a certificate of commencement of business from the ROC in case of a public company

8    STEP 9 : END

This question is a part of GKToday's Integrated IAS General Studies Module