Explain as a promoter state five important documents to prepare for the incorporation of joint stock company
Answers
1)Memorandum of association
The main content of memorandum of association are:
Name clause
Situational clause
Object clause
Functional clause
Capital clause
liability clause
Association and subscription clause
Agreement cluase
2) Article of association
3) prospectus
Information related to management and the objectives of the company
The number of shares to the subscribed by directors and the cash to be received from them.
Capital structure of the company divided into authorized, issued, subscribed and paid up share capital.
Terms and mode of payment, issue of shares on discount or premium
Details about brokerage, underwriting commission and preliminary expenses.
Estimated expenditures for the company and estimated income at least for coming 3 years.
Other necessary particulars.