Companies A/D

Question 1

A. Separate Estates

Answer 1

• A juristic person is a legal subject in their own right thus they are a separate entity from their members/owners which are the shareholders.
• thus, the shareholders are not liable to pay company debts.

Question 2

B. Limited Capacity

Answer 2

• Liability of the shareholders is limited to the amount of shares bought by each.
• that is the maximum amount of money that may be taken.

Question 3

C. How are companies created?

Answer 3

• The Companies Act provides regulations and procedures for creating and registering a company.
• you must sign a ‘Memorandum of Incorporation’ which stipulates what the agreement is.
• you must then register the MOI with the ‘Companies and Intellectual Property Commission’.

Question 4

D. Management of Companies

Answer 4

• the shareholders appoint directors to run the company on their behalf.
• the Companies Act contains provisions that regulate how directors must run the company as well as fiduciary duties of the director.
• they must take care of the company and have the best interest of the company.