Ch 13- Company Formation

Question 1

What documents are required to form a company in the UK ?

Answer 1

1. Memorandum of association : consists of all historical records of the initial members.
2. Application for registration : name, address, members liability and company type.
3. Section 9 documents : share capital and initial shareholdings.
4. Statement of compliance : declaration of compliance.
5. £20 : registration fees.

Question 2

What information is provided by the section 9 documents and why?

Answer 2

When a company is formed to be limited by shares, section 9 documents must be used.
It consists of information such as :
1. The total number of shares taken by the subscribers. (At least 1)
2. The aggregate nominal value of those shares.
3. For each separate class of shares their rights and aggregate values.
4. The amounts paid up by each class of share.

Question 3

Where else can section 9 documents be used ?

Answer 3

Section 9 documents can be used to draft the articles of association.

Question 4

What is the additional requirement to form a plc ?

Answer 4

A trading certificate is required as an additional document for the formation of a plc.

Question 5

List of evidences to acquire a trading certificate : ( 4 points )

Answer 5

1. Allotted share capital is at least £50,000.
2. At least one quarter of the nominal value of the allotted share capital has been paid. ( min. £12,500 )
3. Details of promoters expenses.
4. A statement of compliance with respect to the payment of nominal values and share premium.

Question 6

Consequences of a plc trading without the necessary documentation :

Answer 6

After 12 months the company may be compulsorily wound up and the veil of incorporation lifted.

Question 7

How can a company’s name be changed ?

Answer 7

It can be changed via a special resolution.