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(a)
- The name chosen must have 'Limited' or 'Ltd' as the last word thereof for companies limited by shares or guarantee.
- The name must be undesirable in the opinion of the registrar.
-It must not be too similar to that of an existing company.
- It must not contain the term co-operative, its equivalent or any abbreviation thereof.?
- It must not suggest any patronage of the president, government ministry, department or local authority.
It must not suggest a criminal or moral intent or purpose.
- It must not contain the term 'bank,' 'insurance' or hotel unless the company proposes to carry on such business.
- It must not mislead the public in any way.
- It must not contain the term “national” or 'international'. However, the latter may be used in certain circumstances.
(b)
? As a fiduciary Martha is bound to:
- Actbonafide for the benefit of the company in formation.
- Disclose her personal interest in the contract to an independent board of directors or in the prospectus. She must disclose any secret profit made failing which she is liable to account the same to the company.
- Render proper accounts on the application of monies or assets coming to her hands during the promotion exercise.
(c)
A promoter is not entitled to any remuneration for incorporating a company. This is because there is no contractual relationship between the promoter and the company. In any event the company did not contract for her services. However a promoter may be rewarded in other ways, for example; being offered deferred shares, freedom to sell assets to the company at an over valuation, being appointed director or liberty to sell over-valued assets to the company in return for fully paid shares
marto answered the question on February 6, 2019 at 10:43
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Date posted: February 6, 2019. Answers (1)
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Date posted: February 6, 2019. Answers (1)
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a) James and Shem proposed to form a company by the name 'Micromine Limited'. On behalf of the proposed company, Shem entered into contracts to purchase office furniture and stationery.
Required:
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Date posted: February 6, 2019. Answers (1)
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The shares of Promotion Limited, a private company are held by members of three families, that is, the family of Mr. Karanja, Mr. Mutisya and Mr. Otieno.
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Required:
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Date posted: February 6, 2019. Answers (1)