Obligation of Companies registering under this Part (Section 374 of the Companies Act, 2013) :

Section 374 of the Companies Act, 2013 deals with an obligation of companies registering under this Part. According to this section:

Every company which is seeking registration under this Part (Chapter XXI, Part I- Companies Authorised to register under this Act) shall,—

(i) ensure that secured creditors of the company, prior to its registration under this Part, have either consented to or have given their no objection to company’s registration under this Part;

(ii) publish in a newspaper, advertisement one in English and one in vernacular language in such form as may be prescribed under the Rule 4 of the Companies (Authorised to Registered) Rules, 2014 giving notice about registration under this Part , seeking objections and address them suitably;

(iii) file an affidavit, duly notarised, from all the members or partners to provide that in the event of registration under this Part, necessary documents or papers shall be submitted to the registering or other authority with which the company was earlier registered, for its dissolution as partnership firm, limited liability partnership, cooperative society, society or any other business entity, as the case may be;

(iv) comply with such other conditions as may be prescribed under the Rule 5 of the Companies (Authorised to Registered) Rules, 2014.