CORP · S01Introduction of the SubjectAsked in 3 of 7 papers (Dec ’23, Jun ’24, Jan ’25)
Under the Companies Act, 2013: Which statement best distinguishes a validly incorporated One Person Company from an individual carrying on business as a sole proprietor?
Answering past questions is part of Pro. Today's question is free.
Why
Pro
AThe OPC is merely the member's trade name and can never own property separately.
BThe OPC is automatically a public company because it has fewer than two members.
CAn incorporated OPC is a one-member company with its own corporate existence.
DThe OPC must add a second member before incorporation can have legal effect.
Rule
Exam trap
Remember
Answer every past question, then see whyPro explains every option, gives the rule and the exam trap, and opens every past question.Get Pro