List and explain four documents involved in the formation of a public limited company.

Answer Details

Documents involved in the formation of a public limited company

1. Memorandum of Association: the document that governs the relationship between the company and the outside world. It contains the name clause, registered office (situation) clause, objects clause, capital clause and liability clause, and defines the powers and scope of the company.
2. Articles of Association: the document that contains the internal rules and regulations for the management of the company, such as the rights of shareholders, conduct of meetings, appointment and powers of directors and how dividends are shared.
3. Prospectus: a document (a public invitation) issued to invite the public to buy the shares or debentures of the company. It gives details of the company's prospects, capital and how to apply for shares.
4. Statement in lieu of prospectus / Certificate of Incorporation stage documents: a Statement in lieu of prospectus is filed where the company does not invite the public but wishes to obtain the Certificate of Trading. After registration, the Certificate of Incorporation is issued as evidence that the company legally exists, and a public company must also obtain the Certificate of Trading (Commencement) before it can begin business.