18 Questions
What type of company is considered a small company according to S. 394(3) CAMA?
A company whose directors hold less than 51% of its equity share capital
According to S. 381(5b) CAMA, when is a body corporate deemed to be a wholly owned subsidiary of another?
When it has no member except the other company and the other company's wholly owned subsidiaries are its or their nominees
What defines a holding company's relationship with another company?
The other company is the holding company's subsidiary
What is a consortium of companies according to the text provided?
A group of companies and individuals working together for a common objective
Under what condition can a company be classified as a wholly owned subsidiary?
When it has no member except the other company and that other's wholly owned subsidiaries are its or their nominees
How is a group of companies defined in the text provided?
A collection of parent and subsidiary corporations that function as a single economic entity through a common source of control
Under what circumstances can a company's name be cancelled by the Corporate Affairs Commission?
If the name was erroneously registered
What happens when the Corporate Affairs Commission refuses to register a company's name?
The company can give notice to CAC requiring it to apply to the Federal High Court for directions
What is a consequence of a company's incorporation under S. 41 CAMA?
The company becomes a juristic entity that can sue and be sued in its corporate name
What is a duty of a solicitor in the incorporation of a company?
To take full instructions and seek clarity
What happens to a company's properties upon incorporation?
The properties are retained by the company in its corporate name
What is a consequence of a company's incorporation under S. 42 CAMA?
The company becomes a distinct and separate entity from its members
What is one of the prohibited names according to CAMA?
A name identical with an existing registered company or organization
What is the purpose of reserving a name?
To prevent someone else from registering the same name
What is a requirement for incorporating a company?
The company must provide particulars of its first directors
What is one of the circumstances where a prohibited name can be registered?
If the commission is satisfied that the name is not misleading
What is a restrictive name?
A name that is likely to mislead the public
What is one of the particulars required for incorporating a company?
The proposed location of the company
Test your knowledge on company act compliance including refusal to comply with provisions, illegal business proposals, and disqualification of subscribers. Learn about the cancellation of erroneously registered names by the Corporate Affairs Commission and the process to seek redress through the Federal High Court.
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