registration prescribed by the Act are not complied with before the registration

Even though, the conditions for registration prescribed by the Act are not complied with before the registration was made e.g. all signatories to the
Memorandum are minors, or signatures of the signatories to the Memorandum are found to be forged or the Memorandum is found to be altered after
signatures or there were not seven subscribers to the Memorandum. Once the certificate of incorporation is issued, the court cannot go behind or its
validity cannot be questioned:
It may however be noted that if a company having illegal objects has been registered, the illegal objects do not become illegal by the issue of the Certificate

of Incorporation (Browman Vs. Secular Society Ltd. (1917) A.C. 406].
Thus, once the company has been created, the only method to extinguish it is to resort to the provisions of winding up. The certificate of incorporation,
even if it is irregular, cannot be cancelled Princess of Reuss v.. Bos).
Whereas a private company or a public company not having share capit:.1 can commence business immediately on incorporation, the public companies
having share capital have still to undergo two more stages before they commence business or exercise borrowing powers.
Under the capital subscription stage comes the task of obtaining the necessary capital for toe company.
It may be noted that the new' Comprehensive Guidelines for Disclosure and Investor Protection' 2000 have been issued by the Securities and Exchange
Board of India (SEBI) for compliance by the companies making capital issues to the public These guidelin6s are amended from time to time by the SEBI in
1he interest of investor public.