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Company Registration Process Quiz

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Questions and Answers

What happens to the subscribers to the memorandum of association upon registration of the company?

They become employees of the company
They are no longer associated with the company
They lose their status as subscribers
They become the first members (shareholders) of a body corporate (correct)

What is the inevitable consequence of the incorporation of a company?

Shared legal responsibility
Loss of legal status
Separate legal personality (correct)
No change in legal status

What does the incorporation of a company create?

A partnership
A sole proprietorship
A new and separate legal entity (correct)
An unincorporated association

What does 'piercing the corporate veil' refer to?

<p>Looking behind the company framework to make the members liable (C)</p> Signup and view all the answers

What is the legal consequence of the incorporation of a company?

<p>Creating a new and separate legal entity (A)</p> Signup and view all the answers

Flashcards

Company Registration Effect

Subscribers to the memorandum of association become the company's initial members (shareholders).

Incorporation Consequence

A company's incorporation creates a separate legal entity.

Piercing the Corporate Veil

Ignoring the company's separate legal status and making its members legally responsible.

Company Incorporation Effect

Creates a new, independent legal entity.

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Separate Legal Personality

The company is a distinct entity from its owners, legally separate and responsible for its debts and actions.