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Notice Board
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Question:Which of these is/are true?.

a) The term ‘shell company’ is not defined under the Companies Act, 2013.

b) Shell company is trading firm not often listed on a stock exchange.

c) Both a and b

d) Neither 1 Nor 2

Check Answer:

Answer:
Explaination

Shell company is a non-trading firm formed (and often listed on a stock exchange) as a vehicle to (1) raise funds before starting operations, (2) attempt a takeover, (3) for going public, or (4) as a front for an illegal business.