Question

If the companies does not increase their paid up capital by 1/5 lakhs with in 2 years such companies are known as

Answer 1

If the companies does not increase their paid up capital by 1/5 lakhs with in 2 years such companies are known as public company .✔✔✔

Answer 2

Answer:

If a company does not increase their paid capital such a company is called a Defunct company.  

Explanation:

• In a business context Defunct company is a company that has almost gone bankrupt and has ceased to exist.
• The term Defunct means something that is no longer functioning, existing, or in use.
• Defunct company is not able to increase its paid-up capital by 1/5 lakhs within 2 years.
• It is a company which had no liability, no assets and failed to commence business within a year of incorporation.
• almost gone bankrupt anAccording to the Companies Act, 2013, a defunct company is not involved in any business activities.
• Such a company's name will be removed from the Register of Companies.

Hence, If a company is not able to increase its paid-up capital within two years such a company is called a Defunct company.