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What is the outcome when a company is registered with the Registrar of Companies (ROC)?
What is the outcome when a company is registered with the Registrar of Companies (ROC)?
What is the limitation of the liability of the members of a company?
What is the limitation of the liability of the members of a company?
What is the feature of shares or interests of a company?
What is the feature of shares or interests of a company?
What is the significance of perpetual succession in a company?
What is the significance of perpetual succession in a company?
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What is the purpose of a common seal in a company?
What is the purpose of a common seal in a company?
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What happens to a company when a member dies or becomes insolvent?
What happens to a company when a member dies or becomes insolvent?
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What is the restriction on the transfer of shares, according to the articles of the company?
What is the restriction on the transfer of shares, according to the articles of the company?
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What is the significance of Section 8(1) of the Company Act 2013?
What is the significance of Section 8(1) of the Company Act 2013?
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What is the effect of the death or insolvency of a member on a company?
What is the effect of the death or insolvency of a member on a company?
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What is the implication of Section 8(4) of the Company Act 2013?
What is the implication of Section 8(4) of the Company Act 2013?
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What is the significance of Section 8 of the Company Act 2013?
What is the significance of Section 8 of the Company Act 2013?
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Study Notes
Incorporation
- Section 8 of the Company Act 2013 deals with the incorporation of a company as a separate legal entity.
- A company is considered incorporated when it is registered with the Registrar of Companies (ROC) and a Certificate of Incorporation is issued.
- The company comes into existence from the date of its incorporation.
Liability
- Section 8(1) states that the liability of the members of a company is limited to the amount unpaid on the shares held by them.
- The liability of the members is limited to the extent of the unpaid amount on the shares, and they are not personally liable for the company's debts.
- The liability of the members is limited, but the company itself is responsible for its debts and obligations.
Transferability
- Section 8(2) states that the shares or interests of a company are freely transferable, subject to the restrictions imposed by the articles of the company.
- The transferability of shares is a key feature of a company, allowing members to easily buy and sell shares.
- The articles of the company may impose restrictions on the transfer of shares, but these restrictions must be reasonable and not against public policy.
Perpetual Succession
- Section 8(3) states that a company has perpetual succession, meaning it will continue to exist until it is legally dissolved.
- The company will continue to exist despite changes in its membership, and the death or insolvency of its members will not affect its existence.
- Perpetual succession ensures that the company can continue to operate and fulfill its obligations despite changes in its membership.
Common Seal
- Section 8(4) states that a company may have a common seal, but it is not mandatory.
- The common seal is a symbol of the company's authenticity and is used to authenticate documents and contracts.
- The use of a common seal is optional, and the company can choose to use it or not, as it deems fit.
Incorporation
- A company is considered incorporated when it is registered with the Registrar of Companies (ROC) and a Certificate of Incorporation is issued.
- The company comes into existence from the date of its incorporation, as specified in Section 8 of the Company Act 2013.
Liability
- The liability of the members of a company is limited to the amount unpaid on the shares held by them, as stated in Section 8(1).
- Members are not personally liable for the company's debts, with their liability limited to the extent of the unpaid amount on the shares.
Transferability
- The shares or interests of a company are freely transferable, subject to the restrictions imposed by the articles of the company, as per Section 8(2).
- The transferability of shares is a key feature of a company, allowing members to easily buy and sell shares.
Perpetual Succession
- A company has perpetual succession, meaning it will continue to exist until it is legally dissolved, as stated in Section 8(3).
- The company will continue to exist despite changes in its membership, and the death or insolvency of its members will not affect its existence.
Common Seal
- A company may have a common seal, but it is not mandatory, as specified in Section 8(4).
- The common seal is a symbol of the company's authenticity and is used to authenticate documents and contracts.
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Description
This quiz covers the incorporation of a company as a separate legal entity, including the registration process and limited liability of members.
