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The Issues Of The Companies Act Essay

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The Companies Act is established to improve the laws relating to companies and to provide for any sort of related and consequential matters. It came into operation on the 15th April, 1997. It is stated in the act that no society, association or group consisting of more than ten (10) persons can form any trade or business for the purpose of making a profit or rights unless it is incorporated under this act. The incorporation of companies state that one or more persons may incorporate a company, with or without limited liability, by signing and delivering articles of incorporation to the Registrar and otherwise complying with the requirements of this Division and the name of every incorporator shall be entered in the company’s register of members as soon as may be after the company’s registration. In addition to this, no individual who is under the age of eighteen (18) years, mentally ill shall form or join in the formation of a company under this Act. Furthermore, the Articles of Incorporation shall follow the form set out in respect to the proposed company by its proposed name, whether the liability of its members is limited or unlimited and if the liability of its members is limited whether it is limited by shares or by guarantee or by both shares and guarantee. The articles of incorporation that comply with this act, any company can come into existence on the date shown on its certificate of incorporation. Likewise, under section two (2) and seventeen (17) in the

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