company law

Question 1

what creates and regulates companies in zambia?

Answer 1

1. the companies act aka the CA
2. English common law.

Question 2

what happened to the companies act of 1994?

Answer 2

it was repealed and replaced by an act of parliament in November 2017 and now referred to as the CA.

Question 3

what is the function of the CA to the economy?

Answer 3

it promotes economic growth as it encourages entrepreneurship and business practices.

Question 4

How does the CA define what a company is?

Answer 4

it defines a company as an incorporated entity made in accordance with the CA . it has separate legal personality from its owners and the law recognizes it as a single entity.

Question 5

which section of the CA defines a company?

Answer 5

section 3 of the CA defines a company as an incorporated business entity with separate legal personality from its owners and is recognized as a single entity by the law.

Question 6

Give an example of an incorporated entity?

Answer 6

a company or body corporate.

Question 7

what does separate legal personality mean?

Answer 7

it means the organization which is the company is independent to its owners and can make its own decisions.

Question 8

how does lord justice Lindley define company?

Answer 8

a company is an association of which many people contribute money so that they can share profits and losses according to the shares they own. the money is capital for the business or trade they may start.

Question 9

what does limitation of liability mean?

Answer 9

in a company limitation of liability means the shareholders if experienced with a loss can only lose out on the money he has contributed to the business, and it may never extend to the holder’s private property.

Question 10

what does limitation of liability do?

Answer 10

it is a business protection for shareholders to never make losses that extend to their private property but just to the extent of their contributions in the business.

Question 11

what are the 2 types of companies limited by shares?

Answer 11

1. private company
2. public company

Question 12

define a company simply

Answer 12

it is a registered association which is an artificial person and is an independent legal entity.

Question 13

what types of companies can Zambia incorporate, with authority?

Answer 13

according to article 6 of the CA Zambia can incorporate 2 types of companies.
1. public and
2. private

Question 14

what are the 3 types of