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Questions and Answers
Who is prohibited from being a member of a company?
Who is prohibited from being a member of a company?
What is the minimum number of members required in a public company?
What is the minimum number of members required in a public company?
What is the unique identification number required for a Director?
What is the unique identification number required for a Director?
In which case can a proxy vote?
In which case can a proxy vote?
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Who can be appointed as a Secretary of a company?
Who can be appointed as a Secretary of a company?
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What is the liability of shareholders in a public limited joint stock company?
What is the liability of shareholders in a public limited joint stock company?
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What is an invitation to the public to subscribe for the shares of the Company?
What is an invitation to the public to subscribe for the shares of the Company?
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What cannot be a member of a company?
What cannot be a member of a company?
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How many members must there be in a public company at minimum?
How many members must there be in a public company at minimum?
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What is the unique identification number required to be a Director?
What is the unique identification number required to be a Director?
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Study Notes
Membership Prohibitions and Requirements
- Individuals who are undischarged bankrupts are prohibited from being members of a company.
- A person convicted of crimes related to fraud or dishonesty typically cannot become a company member.
- Minimum of seven members is required to form a public company.
Unique Identification for Directors
- Directors must obtain a Director Identification Number (DIN) for their official identification in company records.
- The DIN is a unique numeric code issued by the relevant authority for all directors.
Proxies and Voting
- Proxies can vote on behalf of members at company meetings when instructed to do so by the member.
- This provision allows members unable to attend meetings to still participate in decision-making processes.
Appointment of Company Secretary
- A Secretary of a company can be any individual who is a qualified professional or holds relevant experience in company management.
- There are no specific legal qualifications required, but a knowledge of corporate governance is essential.
Shareholder Liability
- In a public limited joint stock company, shareholders have limited liability, meaning they are only responsible for company debts up to the amount unpaid on their shares.
- This protects personal assets from being used to settle company debts.
Public Subscription Invitations
- An invitation to the public to subscribe for shares in a company is known as a prospectus.
- This document provides details on the company, its operations, and the investment's terms and risks involved.
Non-Member Entities
- Corporations, companies limited by guarantee, and certain public institutions cannot be members of a company.
- Only individual persons or agreed entities can typically hold membership.
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Description
Test your knowledge of company law with this quiz covering topics such as appointment of a secretary, liability of shareholders, minimum number of members in a public company, and invitations to subscribe for shares.
