It is after getting this "Trading Certificate" that the process of the formation of a public company having a share capital is complete and it is now that such a
company can start its business and exercise its borrowing powers. Any contract made by the company before securing this certificate is provisional only
and shall not be binding on the company till such certificate has been obtained Section 149 (4)]. If the company does not commence’ its business within a
year of its incorporation, it may be wound up by the court. Section 433 (c)].
If the company, on receiving the certif. ketch of commencement of business wishes to start a new business not included in the 'main objects' (i.e. included
in the 'other objects'), it c.1n do so by passing a special resolution or by passing an ordinary resolution and the approval of Central Government. A
declaration by the secretary or a director that the requirement as to the resolution has been complied with must also be filed with the Registrar. Sec.
149(2A) and (2B)].
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