Google Map No.96A 4th Avenue AF-block, Anna Nagar West, Chennai-40 +91 - 9884554654

Notice Board

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:


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.