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Company law by Alice Ken






Company law by
Article Posted: 09/12/2017
Article Views: 466
Articles Written: 365
Word Count: 449
Article Votes: 1
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Company law


 
Education,Law,Writing
Company law is a legislation which regulates the formation, registration, governance, and dissolution of the firm. Its main aim is to control the formation and management of the business. The company is composed of seven or more members of a public company and two members of a private company. Names of the members are subscribed in the company’s memorandum of association. Memorandum of every company must be in English language and the name of the company with the word limited as the last word and state the object of the company. The memorandum of the company limited by shares shall state liability its members as well as state each member’s contribution to the asset of the company. Signatures of the memorandum shall be signed and dated by each subscriber. Law expects the company to register with the registrar of companies upon the formation. According to the company law, a company can either have the liability of its members limited by the memorandum amount or the company may have the unlimited liability of its members. Laws states that each company must have articles of association. Articles of association prescribe the regulations of the company. In case of the unlimited company, the article of association states the number of members proposed to be registered and for when the company has the share capital, it states the amount of share capital which the company proposes to register. The article of association may adopt table A or any regulations that are in it. The article of association should be in English language, printed, divided into paragraphs, dated, and signed by each subscriber to the memorandum of association. Upon registration, the registrar certifies that the company is incorporated, in case of limited company. Certificate of the corporation given by registrar is a conclusive evidence that all requirements of the law have been complied with. A company can only change its name after the approval of the registrar which is signified in writing. Winding up of the company can either be voluntary, by court or subject to the supervision of the court. The company may be wound up by the court due to the following reasons; where the company has not commenced its business within a year from the date of incorporation, where the number of the members has reduced and in cases where the company has failed to pay the debts. In case of winding up, every present and past member shall contribute to the asset of the company. Director of the company whose liability is under provision Act shall contribute as an ordinary member. In case contributors become bankrupt, his trustees shall represent him in all purposes of winding up.

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