The Articles of Associations constitute the rules and regulations by which its internal affairs are governed dealing with such matters as shares, share capital, company’s meetings and directors among others;
Articles of Associations must be signed by seven persons in the case of a public company or two persons if it is intended to form a private company. These signatures must be attested by a witness. If the company has a share capital each subscriber to the share capital must write opposite his name the number of shares he takes and he must not take less than one share.
The Articles of Association are the more important than the memorandum of association in as most court cases in Company Law deal with the interpretation of the Articles.
sharon kalunda answered the question on April 15, 2019 at 05:40
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Explain the meaning and significance of the memorandum of association.
(Solved)
Explain the meaning and significance of the memorandum of association.
Date posted:
April 15, 2019
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Explain consequences of registration of a company.
(Solved)
Explain consequences of registration of a company.
Date posted:
April 15, 2019
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Explain how a limited company is registered in Kenya
(Solved)
Explain how a limited company is registered in Kenya
Date posted:
April 15, 2019
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Explain meaning, functions and the differences between holding company and subsidiary company.
(Solved)
Explain meaning, functions and the differences between holding company and subsidiary company.
Date posted:
April 15, 2019
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What is an unlimited company?
(Solved)
What is an unlimited company?
Date posted:
April 15, 2019
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What are companies limited by guarantee?
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What are companies limited by guarantee?
Date posted:
April 15, 2019
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What are companies limited by shares?
(Solved)
What are companies limited by shares?
Date posted:
April 15, 2019
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What is meant by the term Declaration of Compliance?
(Solved)
What is meant by the term Declaration of Compliance?
Date posted:
April 15, 2019
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Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange...
(Solved)
Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country.
(ii) development of other stock exchanges in Kenya or in your country
Date posted:
February 7, 2019
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Answers (1)
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What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms.
(Solved)
What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms.
Date posted:
February 7, 2019
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Answers (1)
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Mwinzi, a holder of shares in Hewa Airways Company Limited deposited his share certificate with a broker, Otieno. Otieno forged Mwinzi's signature on the share...
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Mwinzi, a holder of shares in Hewa Airways Company Limited deposited his share certificate with a broker, Otieno. Otieno forged Mwinzi's signature on the share certificate and transferred the shares to Kuria. When the share certificate and the transfer document were presented to the company for registration, the secretary wrote to Mwinzi advising him of the transfer. Mwinzi did not reply to this letter and Kuria was registered as the new shareholder. Kuria then transferred the shares to Wafula who was registered as the shareholder and a new certificate was issued.
Explain the effect of the forgery.
Date posted:
February 7, 2019
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Answers (1)
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Enumerate the sequence of events to be followed by a shareholder who intends to
transfer his shares to another person.
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Enumerate the sequence of events to be followed by a shareholder who intends to
transfer his shares to another person.
Date posted:
February 7, 2019
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Answers (1)
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Meshack was recently appointed an accountant of Economy Departmental Store, a public limited company.
The company intends to issue shares to the public. Meshack seeks...
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Meshack was recently appointed an accountant of Economy Departmental Store, a public limited company.
The company intends to issue shares to the public. Meshack seeks your ad
vice on whether there are any restrictions imposed by the Companies Act upon allotment of such shares.
Advise Meshack.
Date posted:
February 7, 2019
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Answers (1)
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In relation to allotment of shares in a company, discuss the legal position in each of the following situations:
(i) Sarah applied for 4,000...
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In relation to allotment of shares in a company, discuss the legal position in each of the following situations:
(i) Sarah applied for 4,000 shares in a public company known as ABC Ltd. She was allotted only 2,000 shares. She intends to sue the company.
Advise Sarah.
Date posted:
February 7, 2019
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Answers (1)
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With regard to investor protection, explain the meaning of inside information
(Solved)
With regard to investor protection, explain the meaning of inside information.
Date posted:
February 7, 2019
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Answers (1)
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Explain to a new shareholder of a central depository account the circumstances in which a central depository securities account may be suspended.
(Solved)
Explain to a new shareholder of a central depository account the circumstances in which a central depository securities account may be suspended.
Date posted:
February 7, 2019
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Answers (1)
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Abel and Boaz have been carrying out business as a partnership.
They have both been employed on full time basis in the business and have...
(Solved)
Abel and Boaz have been carrying out business as a partnership. They have both been employed on full time basis in the business and have shared profits and losses equally. Abel wished to bring his son David into the business and Boaz accepts the proposal.
They wish to convert the partnership into a private limited company, ABD Company Ltd., in which Abel and Boaz will each hold 40 percent of the shares and David will hold 20 per cent. All the three shareholders will be directors of the new private company.
(a) Advise the three shareholders of ABD Company Ltd. on the documents which they
are required to submit to the registrar of companies for approval in connection with the formation of the private company.
(b) After ABD Company Ltd. was formed, there arose a disagreement between Boaz and David regarding the day-to-day management of the business. Abel and David decided to remove Boaz from the board of directors.
Date posted:
February 7, 2019
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Answers (1)
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In pursuit of good corporate governance practices by directors, enumerate the best practices relating to directors which would promote and protect the shareholders rights.
(Solved)
In pursuit of good corporate governance practices by directors, enumerate the best practices relating to directors which would promote and protect the shareholders rights.
Date posted:
February 7, 2019
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Answers (1)
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Outline the reasons that may lead to suspension of promoters by a company.
(Solved)
Outline the reasons that may lead to suspension of promoters by a company.
Date posted:
February 7, 2019
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Answers (1)
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Explain the preliminaries incidental to promotion of a company.
(Solved)
Explain the preliminaries incidental to promotion of a company.
Date posted:
February 7, 2019
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Answers (1)