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Business Regulatory Framework by Purnakam Dash

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26

Formation of a Company

CHAPTER OBJECTIVES

After carefully reading this chapter, you will be able:

  • Understand the procedure of formation of a company.
  • Describe the various important documents of a company.
  • Know the definition and contents of the memorandum of association, the articles of association and the prospectus of a company.
  • Distinguish between a memorandum and an article of association.

A company is an artificial individual in the eyes of law. But, it comes into existence when, some individuals who wish to form a company, come together with a view to carry on some business for the purpose of earning profits. Before forming the company, these persons, who think of forming a company and take the necessary steps to bring it into existence, ...

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