Answer and Explanation:
(a) Can Mohit form a company?
Yes, Mohit can form a company. In India, the Companies Act, 2013 allows individuals to incorporate companies, including private limited and public limited companies.
(b) What kind of a company can be formed by him?
Mohit can form a public limited company by raising funds from the public. A public limited company is a type of company that can offer its shares to the general public and can be listed on the stock exchange.
(c) Who are eligible to incorporate this kind of company?
Any individual or group of individuals who meet the eligibility criteria specified in the Companies Act, 2013 can incorporate a public limited company. The Act requires a minimum of three directors and seven shareholders for the incorporation of a public limited company.
(d) What are the restrictions on the business carried on by these companies?
Public limited companies have certain restrictions on the business they can carry out. Some of these restrictions include:
- Compliance with various legal and regulatory requirements, such as filing annual financial statements and holding annual general meetings.
- Appointment of auditors and conducting audits of financial records.
- Compliance with corporate governance norms.
- Restrictions on issuing shares or debentures to the public without complying with the requirements of the Securities and Exchange Board of India (SEBI).
- Compliance with rules and regulations related to disclosure of information to shareholders and the public.
It's important to note that while Mohit can form a public limited company, it is essential for him to adhere to the legal requirements and regulations governing the operation of such companies to ensure compliance and avoid any legal issues.