Law · Company Law

Under the Companies Act, what is the consequence if a company incorporates by providing false or incorrect information?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1It can be corrected later at any time without any penalty
2The promoters and directors are punishable under the provisions related to fraud✓
3It is treated as a simple clerical error and ignored
4A minor fine up to ₹10,000 only

Correct answer

The promoters and directors are punishable under the provisions related to fraud

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