Question

In: Finance

The student is required to formulate an imaginary company as per Incorporation rules mentioned in Companies...

The student is required to formulate an imaginary company as per Incorporation rules mentioned in Companies act. The student has to explain the objectives for which the company will be formed and also has to frame MOA and AOA of the company.

Solutions

Expert Solution

For incorporation of company, legislation must be decided based on business functions and management. In most of the countries, if the key management decision are taken in one country that are neccesary for conduct of business are in sustance taken, then the legislation of such country to be followed.

Considering India for incorporation, there is SPICE+ website where, we can directly enter the details of company and form an Indian company.

Incorporation rules states for subscription and necessary documentary proofs.

For articles and memorandum of association which are considered as regulatory of the company, acts as contract between shareholders (AOA) and outsiders (MOA) which are fundamental in governing the company.

The format of sample AOA and MOA is provided in schdule 1 of the companies Act, 2013 where there are 10 tables which gives AOA and MOA of each category based on shareholders, share capital etc.,

MOA mainly has various clause that descirbes the company and its function through objective clause.

Objective of company being formed:

It gives separate ownership with limited liability. It also helps to generate capital. Capital is the money needed to produce goods and services. It facilitates Transferability of shares. It brings in expertise, etc.,

In India, it has lower tax rate when compared to partnership.

The student are encouraged to provide point by point answers during presentaiton.


Related Solutions

Differentiate between “Associated Company” and “Subsidiary/Holding Company” mentioned in Companies Ordinance, 1984. What are the major...
Differentiate between “Associated Company” and “Subsidiary/Holding Company” mentioned in Companies Ordinance, 1984. What are the major points to distinguish Private Company from Public Company?
You have an outstanding student loan with required payments of $ 600 per month for the...
You have an outstanding student loan with required payments of $ 600 per month for the next four years. The interest rate on the loan is 8% APR​ (monthly). You are considering making an extra payment of $150 today​ (that is, you will pay an extra $150 that you are not required to​ pay). If you are required to continue to make payments of $600 per month until the loan is paid​ off, what is the amount of your final​...
You have an outstanding student loan with required payments of $ 500 per month for the...
You have an outstanding student loan with required payments of $ 500 per month for the next four years. The interest rate on the loan is 9 %APR​ (compounded monthly). Now that you realize your best investment is to prepay your student​ loan, you decide to prepay as much as you can each month. Looking at your​ budget, you can afford to pay an extra $ 250 a month in addition to your required monthly payments of $ 500 or...
you have an outstanding student loan with required payments of $550 per month for the next...
you have an outstanding student loan with required payments of $550 per month for the next four years. The interest rate on the loan is 10% APR. You are considering making an extra payment of $100 today? (that is, you will pay an extra $100 that you are not required to? pay). a. If you are required to continue to make payments of $550 per month until the loan is paid? off, what is the amount of your final? payment???...
You have an outstanding student loan with required payments of $500 per month for the next...
You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 8% APR. You are considering making an extra payment of $200 today (that is, you will pay an extra $200 that you are not required to pay). If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? What...
Companies A and B have been required the following rates per annum on a $10 million...
Companies A and B have been required the following rates per annum on a $10 million notional: Fixed rate Floating rate Company A 2.0% p.a. LIBOR + 0.3% p.a. Company B 3.0% p.a. LIBOR + 1.3% p.a. a)Under which assumption Company A and B may find it useful to enter a swap? b)In that case, design a swap that will net a bank, acting as intermediary, 0.2% per annum and that will appear equally attractive to both companies. How does...
Registered Companies are required to circulate annual reports to members of the company. Some of the...
Registered Companies are required to circulate annual reports to members of the company. Some of the most important components are the Auditors Report and the Directors Report. (i) Briefly explain the type of opinion that may be expressed in the reports and how such opinions affect the organization. (ii) The Directors Report is a key component of the Annual Financial Report of a company. State and explain any four (4) of the contents of the Directors Report. ( iii) You...
Braxton's Cleaning Company stock is selling for $34.00 per share based on a required return of...
Braxton's Cleaning Company stock is selling for $34.00 per share based on a required return of 9.6 percent. What is the the next annual dividend if the growth rate in dividends is expected to be 4.2 percent indefinitely? Multiple Choice $1.91 $1.76 $1.68 $1.84 $2.01
2.       You are required to find companies with great learning and development programs. 3.       Write about one company...
2.       You are required to find companies with great learning and development programs. 3.       Write about one company only: a.       the name of the company, b.       explain the program that the company used to apply the new learning and development initiatives c.       explain how the new program affect the company 4.         You have to write the references that you use and the date and time of using the reference.   
Tucker Company produced 7,000 units of product that required 3.2 standard hours per unit. The standard...
Tucker Company produced 7,000 units of product that required 3.2 standard hours per unit. The standard variable overhead cost per unit is $6.40 per hour. The actual variable factory overhead was $140,490. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT