Commercial Applications
A public company cannot begin its operations until it has obtained a certificate of incorporation and a certificate to commence business.
- True
- False
Joint Stock Company
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Answer
True
Reason — A public company cannot commence its business until it has obtained two certificates — the Certificate of Incorporation (which brings the company into legal existence) and the Certificate of Commencement of Business. Only after receiving both certificates can a public company start its business operations. This is one of the points of distinction from a private company, which can commence its business immediately after getting the Certificate of Incorporation.
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