i. Can Mr. Ram, Mr. Sam, and Mr. Tom convert their partnership firm into a company?
Study the following case and express your opinion:
1. Mr. Ram, Mr. Sam, and Mr. Tom who are partners have come together to convert their business into a company. They have finalized all the details about the business they want to do, the capital needed, etc. However, they do not know how to proceed with the legal formalities. Hence they appoint Mr. Shah who is a Practicing Company Secretary to help them prepare documents needed for incorporating the proposed company.
i. Can Mr. Ram, Mr. Sam, and Mr. Tom convert their partnership firm into a company?
ii. Name 2 most important documents needed to incorporate a company.
iii. Will Mr. Shah be considered a Promoter of the Company? Why?
1 Answers
i. Mr. Ram, Mr. Sam, and Mr. Tom can convert their partnership firm into a company easily.
ii. Memorandum of Association and Articles of Association are the two most important documents for the Incorporation of the Company.
iii. Mr. Shah will not be considered a Promoter.
Mr. Shah is an advising company secretary and will help to prepare documents needed for incorporation. Promoter means a person or group of persons who take initiative efforts for the formation of the company. Here Mr. Ram, Mr. Sam, and Mr. Tom are in the role of Promoter.