BoredProgrammers Internship Questions

Statement 1
Q1. Anyone can work without the "company of commencement"?

Answer – Cannot work before commencement of business unless and until the procedure of
commencement of business is not fulfilled or satisfied under section 10A and 12 of Companies
Act, 2013.

A Public and Private Limited company having share capital cannot commence business until it
has obtained the certificate of commencement of business (COB) from the concerned Registrar
of Companies. Normally a new company will comply with the required formalities and obtain
the certificate of commencement of business (COB) from the Registrar as soon as possible after
formation because it cannot commence any business activities or exercise its borrowing powers
without it.

Q2. Think that the startup is not yet registered for the company of commencement, and they
are in trouble/or in any problem, will you be able to do any legal way to get back from any
problem?

Answer - No we cannot get back the startup legally because, according to section 3 and 7 of
companies Act the procedure needs to be fulfilled whereas one can run the business or a
startup without registration but cannot take the merits or advantage of a registered company.

Statement 2

Q1. How can ‘A’ will get their money back, legally?

Answer - Yes “A” can file a suit under section 20 of Specific relief Act, section 73 of Indian
contract Act and section 12 of limitation Act(if any time limit is barred).

Q2. What do you do in this case?

Answer - Approach the Civil Court with a suit against “B”.

Statement 3

Q1. Will the Partner of the 50% change/modify anything?

Answer - No one cannot do anything without the consent of the other partners under section
63(1) of I.P. ACT,1932.

Q2. Will the Partner of the 50% Share remove the other two partners?

Answer – No. Unless and until there is some reasonable cause for the removal of the partners.
These are the few reasonable causes for the removal of the partners:

 Breach of financial data

 Fraud
 Negligence
 Purposeful misconduct
 Violation of the law
 Bankruptcy or insolvency of general partner
 Breach of confidential documents
 Lack of funding operation deficits
 Jeopardy of tax status or limited liability protection
 Change in terms of the partnership agreement
 Retirement or resignation of a partner
 Changes in responsibilities of a partner
 Inability to perform obligations, as defined in the LLP agreement
 Necessity of appointing a professional in the particular field of operations of the LLP.

Q3. If the signatory is same as of 50% share member then will be able to remove/change the
member?

Answer - No, the process of removal of partner does not change even if the Signatory is same
as of 50% share member. The partnership would be dissolved and then he can bring new
partners.