share capital and issuing a prospectus inviting the public to subscribe

A public company, having. a share capital and issuing a prospectus inviting the public to subscribe for its shares, will have to file the following
documents with the Register to secure the certificate of commencement of business:
(0) The declaration that shares upto the amount of the minimum subscription have been allotted by the company.
(b) The declaration that every director of the company has paid in cash the application and allotment money on his .shares in the same prop onion as
others.
(c) The declaration that no money is liable to become refundable to the applicants by reason of failure to apply for or to obtain permission for the shares or
debentures to be dealt in on any recognized stock exchange.
(d) The statutory declaration in the prescribed form (Finn No. ] 9) by one of the directors or the secretary or, where the company has not appointed a
secretary, a secretary in whole-time practice that the above requirements have been complied with. Sec. 149 (1)]
Where the Com I) any has not Issued l Prospectus. If a public company having share capital has not issued a prospectus, Section 149 (2) requires that it
shall not commence business or exercise its borrowing powers unless: .
(a) a statement in, lieu of a prospectus is filed with the Registrar;
(b) every director of the company had paid the company in cash
application and allotment money on his shares in the same proportion as others;
(c) a declaration duly verified by one of the directors or the secretary that the above requirements have been complied with is filed with the Registrar. If the
company has not appointed a secretary it can get the declaration signed by a secretary in whole-time practice. Section 149 (2)].
The Registrar will scrutinize these documents and if he is satisfied, he shall issue a certificate certifying therein that the company is entitled to commence
business. This certificate is conclusive evidence that the company is so entitled. Section 149 (3)].