Entrepreneurial Law

You have learnt that a company may divide its shares into different classes and that the holders enjoy different rights according to the class of shares that they hold. You will now learn who is responsible for taking decisions in companies. These decisions are taken at different types of meeting. Below, we explain what happens at these meetings and the important role that shareholders play.

You have already been introduced to one of the organs of a company: the general meeting of shareholders. The shareholders of a company exercise their rights and functions entrusted to them in the Companies Act and the Memorandum of Incorporation by adopting resolutions at a meeting of shareholders. We now introduce the other main organ of a company: the board of directors. We also introduce you to one of the office bearers of the company, namely the director.

Compulsory disclosure of financial information concerning the company plays an important role in protecting the interests of shareholders, investors and creditors. In order to undertake certain projects, companies usually depend on capital investments made by members of the public. For example, members of the public may purchase shares or debentures in the company or advance loans to the company. Investors and financiers are usually not willing to invest or lend money unless there is proper fina

Company secretaries are very important prescribed officers. The perception many students have regarding company secretaries is completely wrong. Company secretaries do not just type letters and make tea! Company secretaries as the principal administrative officers in companies need to be very knowledgeable about all legislation applicable to companies. They must be informed to such an extent that they are capable of advising directors of their legal duties and those of the company. In this study