- 1 Marks
Question
When does a subscriber of a Memorandum of Association become a shareholder of the company?
Answer
Immediately upon incorporation
Explanation:
A subscriber to the Memorandum of Association becomes a shareholder of the company as soon as the company is incorporated. This is because their name is listed in the Memorandum, and by virtue of this, they are allocated shares in the newly incorporated company.
- Tags: Company Law, Memorandum of Association, Shareholder
- Level: Level 1
- Topic: Company Law
- Series: NOV 2011
- Uploader: Theophilus