Company Law

Table of Contents

Task 1: understanding the nature of a company 3

1.1 Corporate responsibility and lifting the veil 3

1.2 Lifting the veil of incorporation 3

1.3 Advantages and Disadvantages of Incorporation 3

1.4 Law on promoters and pre-incorporation contracts 4

1.5 Promoter 4

1.6 Laws regarding the duties of promoters 4

1.7 Pre-Incorporation Contracts:- 4

1.8 Requirements of registration of an incorporated business entity 5

1.9 Trading requirements for Private Limited Companies:- 5

Task 2: Memorandum, Article of Association Doctarian of Ultra Vires and its Effects: 5

2.1 Requirements for memorandum of association 5

2.2 Articles of Association 6

2.3 Evaluation of doctrine of ultra vires and its effects 6

2.4 Prospectus 7

Task 3: Types of Share Capital, Law on Issue of Shares and Dividends Capital Maintenance and Insider Dealing: 7

3.1 Types of Share Capital 7

3.2 Law regarding Issue of shares, class rights and dividends 8

Task 4: Understanding about Shareholders, Directors, Charges and Insolvency: 10

4.1 Duties and Powers of Directors: 10

4.2 Different Types of Meetings: 10

4.3 Law on Minority Protection: 11

4.4 Rights of Shareholders and Debenture holders: 11

4.5 Rights of Liquidation: 11

Bibliography 12

Task 1: understanding the nature of a company

1.1 Corporate responsibility and lifting the veil

Incorporation refers to the process of legally pronouncing a corporate entity as distinct from its owners (Investopedia, n.d.).

A company is a legal person in the eyes of law. It has all rights and duties of a legal person. It is responsible for its own debts, liabilities, creditors, customers. Therefore, shareholders can’t be held personally liable for the actions of company (Albinet.com, n.d.).

1.2 Lifting the veil of incorporation

Lifting the veil of incorporation refers to a situation when a shareholder claiming limited liability through the corporate liability shield, is pierced by creditors in order to get access to the...