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