Section 3 — Formation of Company
Section 3 Companies Act 2013: minimum members to form public, private & OPC companies, OPC nominee rules — key for CA Inter May 2026 exams.
Paper 2 — Corporate & Other Laws · Chapter
Incorporation of Company & Prospectus
Foundational chapter of Companies Act 2013 covering formation of companies, types of companies, MoA, AoA, prospectus, and private placement. Sections 3–42 are heavily tested in CA Inter Law for 8–12 marks.
12 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Section 4 — Memorandum of Association
Section 4 Companies Act 2013: MOA clauses, name reservation rules (20 vs 60 days), penalties — explained simply for CA Inter May 2026 exam.
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3
Section 5 — Articles of Association
Section 5 Companies Act 2013 explained: Articles of Association, entrenchment rules, model articles & RoC notification — CA Inter exam guide
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4
Section 7 — Incorporation of Company
Section 7 Companies Act 2013: documents for ROC registration, Certificate of Incorporation, CIN allotment & fraud penalties — explained for
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5
Section 8 — Formation of Companies with Charitable Objects
Section 8 Companies Act 2013 explained for CA Inter: how NGOs & non-profits register without 'Limited', key conditions, penalties & exam tip
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6
Section 12 — Registered Office of Company
Section 12 Companies Act 2013: registered office rules, display requirements, shifting procedure & penalties explained for CA Inter May 2026
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7
Section 13 — Alteration of Memorandum
Section 13 Companies Act 2013 explained: how to alter MoA (name, state, objects) via special resolution, CG approval rules & SEBI exit right
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8
Section 14 — Alteration of Articles
Section 14 Companies Act 2013: How companies alter Articles of Association, convert private to public or vice versa, and key Central Governm
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9
Section 23 — Public Offer & Private Placement
Section 23 Companies Act 2013 explained: public vs private company routes to issue securities — IPO, FPO, private placement, rights issue. C
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10
Section 26 — Matters to be Stated in Prospectus
Section 26 Companies Act 2013: mandatory contents of a prospectus, 90-day validity rule, SEBI disclosure norms, expert consent & penalties —
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11
Section 35 — Civil Liability for Misstatement in Prospectus
Section 35 Companies Act 2013: who pays compensation for misleading prospectus statements — directors, promoters, experts — and available de
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12
Section 42 — Private Placement of Securities
Section 42 Companies Act 2013: private placement rules, 50-person limit, 60-day allotment deadline — explained simply for CA Inter May 2026
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