(a)
- Ascertainment and determination of the company's name. This is necessary before the application or reservation of the name is made to the registrar.
- Determination whether the company is public or private. This is critical as it affects the contents of the articles of association.
- Determination whether liability is limited by shares or guarantee. For trading companies liability is limited by shares while non-trading companies are limited by guarantee.
- Determination whether the company shall have a share capital. This depends on:
- Whether liability is limited by shares or guarantee.
- Intention of promoters.
In law, promoters are not entitled to remuneration for incorporating a company for the simple reason that the company did not engage their services. However, promoters may be rewarded in other ways:
- acting as commission agents.
- being appointed the first directors of the company.
- being afforded the opportunity to take up extra shares at par value after market value has risen.
- being offered deferred or founders or management shares.
- upon disclosure, a promoter is free to sell overvalued assets to the company for a profit.
- upon, disclosure a promote is free to sell overvalued assets to the company is return for fully paid shares of the company.
(b) In law, promoters are not entitled to remuneration for incorporating a company for the simple reason that the company did not engage their services. However, promoters may be rewarded in other ways:
- acting as commission agents.
-being appointed the first directors of the company.
-Being afforded the opportunity to take up extra shares at par value after market value has risen.
- being offered deferred or founders or management shares.
- upon disclosure, a promoter is free to sell overvalued assets to the company for a profit.
- upon, disclosure a promote is free to sell overvalued assets to the company is return for fully paid shares of the company.
marto answered the question on February 7, 2019 at 07:21
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Discuss the ways in which the traditional role of an auditor has been affected by recent demands by regulatory authorities and shareholders. (Solved)
Discuss the ways in which the traditional role of an auditor has been affected by recent demands by regulatory authorities and shareholders.
Date posted: February 7, 2019. Answers (1)
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The law requires that certain statutory books must be kept in the registered offices of the company.
Explain the contents and matters...(Solved)
The law requires that certain statutory books must be kept in the registered offices of the company.
Explain the contents and matters relating to inspection of the following statutory books:
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The principle of corporate legal personality is an important and fundamental aspect of company law.
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Highlight the factors that should be established in order for a third party to successfully sue an auditor for professional negligence.
Date posted: February 7, 2019. Answers (1)
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Discuss.
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Date posted: February 7, 2019. Answers (1)
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(a) The principle of corporate legal personality is an important and fundamental aspect of company law.
Discuss this statement citing relevant decided cases....(Solved)
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Discuss this statement citing relevant decided cases.
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Discuss.
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Modern Vehicles Ltd. then sells the trucks to Kamaliza Ltd. at Sh. 100,000 over and above the true market price. Mwerevu voted at the board meeting of Kamaliza Ltd. which decided on the purchase price, without revealing that he controlled the vendor company. When true facts are discovered, the company's board of directors does not protest against Mwerevu's conduct.
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Date posted: February 7, 2019. Answers (1)