Case Study of London Car Repair Ltd
Added on 2021-01-01
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CASE STUDY
Table of ContentsPROJECT 3......................................................................................................................................3Steps that were taken to form the Company................................................................................3Nature and essentials content of the Company 's articles and Memorandum of association......3Shareholder involvement in the expansion and the extent they are liable for Company's debts4Nature of shares and difference between ordinary and preference shares...................................4Company's resolutions and the matters for which resolutions are required................................4Power of Directors.......................................................................................................................5Duties which Directors owe to the Company..............................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONBusiness Law refers to the body of law that governs the business and commerce. It isoften considered as the branch of civil law and deals both with issues of public and private law.The project report is based on Case Study of London Car Repair Ltd. Report will outline thesteps that were taken to form a company and essential content of a company's articles andmemorandum of association. Further report will differentiate between ordinary and preferenceshares. Lastly, report will discuss the power of directors and their duties in the Company.Background of the CompanyLondon Car Repair Ltd is organised in London UK, it deals in repair and maintence ofCars. Therefore, it has in total 20 numbers of shareholders. Each shareholder has 5 shares intotal. The nominal value of the shares is $50. In future the company will expand their businessby bringing modification in Cars with the use of high technological advancement.Steps that were taken to form the CompanyLondon Car Repair Ltd has to following steps -Selection of suitable name and as the Company is private it is necessary to includeprivate Ltd in its last name (Hannigan, 2018).The Company should have registered office.Appointment of one director is mandatory so company has to appoint a person who is atleast 16 years old.The Company should have at-least one share class. The value of shares can range from£0.01 upwards. Once the Share Class has issued one shared should be issued to oneperson.From 6 of April 2016 it is mandatory to keep track record of people with significantcontrol (PSC).Lastly the Company has to submit formation form before it they checks the informationwhich is being entered is correct.Nature and essentials content of the Company 's articles and Memorandum of associationArticle of Association – Article of Association is an important document that containsrules and regulations of the Company. Nature of document lays out how tasks are to beaccomplished in the Company inclusive of the process for appointing directors and handling thefinancial records.
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