Theory question 104
Business UnitsCommerce 2 (essay)
(a) State five features common to both public and private limited companies.
(b) State five provisions of a memorandum of association.
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(a) Any five: limited liability; separate legal entity; continuity (perpetual succession); registered with the Registrar/CAC; have memorandum and articles of association; managed by a board of directors; capital divided into shares; must keep accounts and hold AGMs; owned by shareholders.
(b) Any five: name of the company (with Ltd or Plc); registered office address; objects of the company; statement that liability is limited; authorised share capital and how it is divided; association clause signed by the subscribers.
The memorandum's clauses are name, office, objects, liability, capital and association.