Flashcards in Chap 17: Private Ltd Company Deck (14)
Money used by the firm to set up and run the company
Issued share capital
Number of shares sold ( amount of money)
Authorized share capital
Maximum number of shares that can be sold
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
6. Certificate of incorporation (CRO)
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?)
Annual General meeting
Extraordinary general meeting
When does an EGM occur?
In case of emergency
What is the memorandum of association?
The relationship between the company and the outside world
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
What is the Certificate of incorporation?
Certificate given by the CRO
Birth cert of the company
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
People who buy a share in a company. They own part if that company