Business law and practice : [2010/11] by Trevor Adams; Christopher Morris

By Trevor Adams; Christopher Morris

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A common way of providing articles for a company is to utilise the precedent but to make specific amendments to it in order to make it more appropriate to the particular company. 1) at the registered office, for example internal registers and minutes of meetings. However, the registered office does not have to be, and frequently will not be, a place where the company carries on business. As the company has no physical existence, it has a registered office so that those who need to do so can ‘find’ it, for example to serve official notices or legal documents.

The interpretation was that it would protect a genuine third party from a defective decision of the board, and quite likely from where there had been no decision of the board. The judges seem to have been keen to interpret the relevant section as intended to protect the third party dealing with the company. 5). An outsider dealing with the company is entitled to assume that the power of the directors to act on behalf of the company is unfettered. The third party is not required to consult the constitution (CA 2006, s 40(2)).

The formation of companies is not a skill to be neglected, as many law firms will incorporate their own shelf companies so that they have one ‘oven ready’ when the client walks through the door. Having formed the shelf company, the trainee solicitor may then subsequently have the job of adapting it for the client. 4 How to form a company The CA 2006 has simplified the process of forming a new company. Under s 9, the requirements are to file: (a) the memorandum, giving details of the subscribers and signed by them; (b) an application for registration, specifying matters such as the proposed name of the company, registered office, whether the company is limited by shares or guarantee, and whether the company is private or public; (c) a statement of capital and initial shareholdings, which replaces the authorised share capital; (d) a statement of the proposed officers, including directors and secretary, if any; (e) the address of the registered office; (f) a copy of the articles of association, or a statement that model articles are being used; and (g) a statement of compliance (s 1068).

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