26 April 2015
Section 11 of the Companies Act 2013 corresponds to section 149 of the Companies Act, 1956 and seeks to provide that the company having a share capital shall not commence business or exercise any borrowing powers unless a declaration is filed with Registrar by a director or subscriber that every subscriber to the memorandum has paid the value of shares taken by him (minimum five lakh rupees for public company and minimum one lakh rupees for private company) and the company has filed with the Registrar the verification of its registered office. The Registrar of companies may remove the name of the company from the register, if a company has not filed declaration within a period of one hundred and eighty days of the date of incorporation and if he has reasonable cause to believe that the company is not carrying on business or operations.
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