Which represents the right order for the formation of a public company?
1. Capital Subscription 2. Promotion 3. Incorporation

1-2-3

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3-2-1

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2-3-1

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2-1-3

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Solution

The correct option is C
2-3-1

Formation of a public company takes place in the order of promotion, corporation followed by capital subscription.

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Stages in the formation of a public company are in the following manner

(a) Promotion, Commencement of business, Incorporation, Capital Subscription

(b) Incorporation, Capital Subscription, Commencement of business, promotion

(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

What is the role of underwriters in the capital subscription stage of public limited company?

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