formation of a private limited company. memorandum of association external rules of the company name...

Formation of a Private Limited

Company

Memorandum of Association

External Rules of the company Name of the company Objectives : What the co. does Statement of Limited Liability Statement of Authorised Share

Capital (Number of shares they can sell)

Signatures of directors Sent to Companies Registration

Office

Articles of Association Internal Rules of co. Name of company Rules for meetings Voting rights of shareholders Rules for election of

directors Borrowing power of the

company Sent to registrar of

companies

Certificate of Incorporation Birth Certificate of the

company Means that company is a

separate legal entity Company can sue and be

sued in it’s own name Received from registrar of

companies

Summary of Company Documents

Memorandum of

Association

Articles of Association

Form A1

RegistrarOf

Companies

CertificateOf

Incorporation

Recording the Share Capital in the Accounts

Debit Bank A/C

Credit Share Capital A/C

Record €100,000 Share Issuein the Books of First Entry

BANK A/C

Date Details F Total Date Details F Total1/1/08 SHARES GL 100,00

0

SHARE CAPITAL

A/C

Date Details F Total Date Details F Total1/1/08 BANK CB 100,00

0

What is Share Capital? When you need money to start

your company you can sell shares to people.

A shareholder is willing to invest money in the business to obtain part ownership of the business and also to share profits (dividends)

Distinguish between

Authorised Share Capital

Maximum amount of shares you are allowed to issue/sell

Issued Share Capital

Actual amount of shares you have issued/sold

Recap of Key Terms Mem of Assoc. Articles of Assoc. Cert. of Incorporation Shares Dividends Authorised Share Capital Issued Share Capital