Professional Documents
Culture Documents
Definition of A Company
Definition of A Company
1
Features of a Company
Separate Legal Entity
Limited Liability
Perpetual Succession
Common Seal
Transferability of shares
Separate property
Capacity to sue
2
Kinds of Companies
3
Kinds of Companies
4
Kinds of Companies
5
Company - Advantages
Companies are designed as to make it easy to raise
capital.
Companies have the ability to subdivide their
capital into small amounts, allowing them to draw
in huge numbers of investors who also benefit
from the sub-division by being able to sell on
small parts of their investment.
Limited liability also minimises the risk for
investors and is said to encourage investment.
6
Company – Advantages (cont.)
It is also said to allow managers to take
greater risk in the knowledge that the
shareholders will not lose everything.
The constitution of the company provides a
clear organisational structure which is
essential in a business venture where you
have large numbers of participants.
7
Company – Advantages (cont.)
It is also said to allow managers to take
greater risk in the knowledge that the
shareholders will not lose everything.
The constitution of the company provides a
clear organisational structure which is
essential in a business venture where you
have large numbers of participants.
8
Formation of Company
9
Memorandum of Association
Contents of Memorandum
• Name Clause
• Registered office clause
• Object Clause
• Liability Clause
• Capital Clause
• Association Clause
10
Articles of Association
11
Prospectus
12
Prospectus
Contents of Prospectus
• Part II of Schedule II
A. General Information – Consent of Directors, Auditors,
Solicitors/Advocates, Bankers etc
Experts opinion obtained
Name and addresses of the company Secretary, Lead Managers, Legal
Advisor, Bankers to the company
B. Financial Information
Report by the Auditors
Report by the Accountants
C. Statutory and other information
Minimum Subscription
Underwriting Commission and brokerage etc.
13