Question

After a company has been incorporated, it has to apply for a certificate to commence business before it can start operating formally. Outline the information that has to be provided in the returns filed with the Registrar of Companies.

b. The Registrar of Companies is empowered to call on a company to produce for his inspection all or any of the books of the company. Explain the circumstances under which the Registrar may exercise such powers.

c. Explain any five advantages of registration of a company.

Answer 1

INFORMATION TO BE PROVIDED

1-Memorandum of Association

2-Articles of Association

3-Prospectus /Statement in lieu of prospectus is not required in case of a private company

4-Copy of import agreements.

5-Statutory declaration in Form I

6-Copy of Letter of Register indicating approval of name.

7-Power of Attorney.

8-Notice of the situation of registered office (in Form 18) and particulars of Directors (in Form 32).

b,

CONDUCT OF INQUIRY - when the business of the company is done in an unlawful or fraudulent manner when investors complaints are not addressed

POWER OF CENTRAL GOVERNMENT- the central government may direct the registrar to do an inspection when they find illegal things

LIABILITY OF OFFICERS FOR FRAUD- every officer in default  shall be punishable if the company is found unlawful

c,ADVANTAGES

it helps to limit personal liabilities

it helps to minimize tax liabilities

it helps to reduce conflicts between founders

it enhances the reputation and brand image of the business

it helps to raise significant capital