To obtain approval for commencing business

To obtain approval for commencing business

(1) No public company incorporated under this Act shall commence its business

without obtaining the approval to carry on its business.

(2) A public company shall make an application, along with the evidence showing the full payment of calls on the shares, out of the amount of shares undertaken to be subscribed by its promoters, to the office for getting approval pursuant to Sub-section (1)

(3) Where an application is made pursuant to Sub-section (2) and it so proved that calls on the shares, out of the amount of shares undertaken to the Office shall grant approval for carrying on the business.

           Provided, however, that if the amount paid up on shares is less than the amount mentioned in Sub-section (1) of section 11, the Office shall not grant such approval.

(4) without obtaining the approval to commence business pursuant to Sub-section(2), there shall not be carried out any act of publishing the except those acts such as convening the extraordinary general meeting, meeting of the board of directors and management of the company.

(5) Notwithstanding anything contained in Sub-section (2), wherein the case of a company carrying on any specific business, the competent regulatory body empowered to regulate such business under the prevailing law has , while granting a license, specified any terms and conditions to be complied with prior to the commencement of such business, no approval to commence business shall be granted unless and until an evidence showing the compliance with such terms and conditions is submitted.

(6) Notwithstanding anything contained elsewhere in this Section, a private company may commence its transactions immediately upon receipt of the certificate of registration with the Office.

         Provided, however, that where an approval is to be obtained from the concerned body pursuant to the prevailing law to carry on any specific transactions, the company shall commence its transactions only after obtaining such approval.