This topic covers: types of companies + how a company is legally formed (incorporation) + its “charter documents” (MOA and AOA) + the doctrine of ultra vires (acts beyond company’s powers).
Exam pattern:
You should be able to:
Companies can be classified based on:
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Private vs public company:
Thus, private companies have closer control; public companies have wider ownership and compliance.
Companies based on liability:
Hence, liability classification shows the extent of members’ risk.
Corporate law (also known as business law or enterprise law or sometimes company law) is the body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses. It thus encompasses the formation, funding, governance, and death of a corporation.
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This topic covers: types of companies + how a company is legally formed (incorporation) + its “charter documents” (MOA and AOA) + the doctrine of ultra vires (acts beyond company’s powers).
Exam pattern:
You should be able to:
Companies can be classified based on:
Incorporation is the legal process by which a business becomes a registered company and obtains a separate legal identity.
Importance/effects:
Typical steps (high-level):
Flow (write/draw): Name → MOA/AOA → Filing to ROC → Scrutiny → Certificate of Incorporation
Promoters are persons who take steps to form a company: conceptualise idea, arrange capital, prepare documents and complete registration.
Exam keywords: fiduciary position, disclosure, no secret profits.
MOA is the primary charter of the company defining its relationship with the outside world and the scope of its powers.
Key clauses (write as points/table in exams):
AOA contains the internal rules and regulations for company management.
Typical contents:
An act is ultra vires if it is beyond the company’s powers as defined in the MOA (especially the object clause).
Mini table:
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MOA is the charter document defining the company’s identity and limits of powers; it is crucial for outsiders and governance.