Classification of Company Status

1627 Words Feb 26th, 2018 6 Pages
S15 state that if a company having a share capital may be incorporated as a private company if its memorandum or articles contain the following:-
(a) There must be restrictions on the right of members to transfer their share.
(b) The members must not be more than fifty (50) not including:
- Person who are in the employment of the company; AND
- Person who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased
(c) Prohibits invite the public to subscribe for any shares in, or debentures of the company.
(d) Prohibits any invitation to the public to deposit money with the company for fixed periods or payable at call, whether bearing or not bearing interest.

Where, upon the commencement of this Act, neither the memorandum nor articles of a company that is a private company by virtue of paragraph (a) of the definition of ‘private company’ in subsection 4(1) contain the restrictions, limitations and prohibitions required by subsection (1) to be included in the memorandum or articles of a company that may be incorporated as a private company, the articles of the company shall be deemed to include each such restriction, limitation or prohibition that is not so included and a restriction on the right to…
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