Chap 17: Private Ltd Company Flashcards Preview

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Flashcards in Chap 17: Private Ltd Company Deck (14)
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1

Capital

Money used by the firm to set up and run the company

2

Issued share capital

Number of shares sold ( amount of money)

3

Authorized share capital

Maximum number of shares that can be sold

4

Steps to set up a company

1.select a company name
2.Design your stationary (logo)
3.Draft the memorandum and articles of association
4.CRO (companies registration office) send forms
5.Bank account
6. Certificate of incorporation (CRO)
7.Board meeting

5

What are the articles of association?

The Internal rules
Shows the relationship between the shareholders and the company
Voting rights included (how many votes has each share?)

6

AGM

Annual General meeting

7

EGM

Extraordinary general meeting

8

When does an EGM occur?

In case of emergency

9

What is the memorandum of association?

The relationship between the company and the outside world

10

What is found in the memorandum of association?

Name of company
Address of company
Business that the company is in (eg. Sale of books)
Name and address of shareholders

11

What is the Certificate of incorporation?

Certificate given by the CRO
Birth cert of the company

12

What does the certificate of incorporation do?

Makes the company a separate legal person
Gives the shareholders limited liability
Can only lose what they put into the company

13

Shareholders

People who buy a share in a company. They own part if that company

14

Loan capital

Money received from loans either from the bank or shareholders