Discuss the provisions of section 150 of the Act about the Restriction on Commencement of Business.

Certificate of commencement of business: (Section 150)

A company (Public Limited) shall not commence any business or exercise any borrowing powers unless:

a) Shares held subject to the payment of whole amount thereof in cash have been allotted to an
amount not less than the minimum subscription;

b) Every Director of the company paid in cash each of the share held;

c) A certificate of compliance by the Company Secretary or a Director that above formalities have
been complied;

d) A statement in lieu of prospectus has been submitted where no prospectus is issued for invitation to subscribe the share to the public.