CORP · S01Introduction of the SubjectAsked in 3 of 7 papers (Dec ’23, Jun ’24, Jan ’25)
A company owns a warehouse. Its sole shareholder argues that owning every share makes the warehouse the shareholder's personal property. Under the Companies Act, 2013, which answer is best?
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AThe shareholder and company automatically co-own every asset in the same proportions as the shares.
BThe directors personally own the warehouse until the company declares a dividend.
CThe shareholder owns the warehouse while the company merely holds it as a statutory trustee.
DThe company owns the warehouse; share ownership alone does not transfer it.
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