Advantages for forming an incorporated company include:

• Separate Legal Entity: The company is distinct from its members.
• Ownership of Property: The property of the company belongs to the company and not that of the members.
• Perpetual Succession: The death of a member/shareholder of the company cannot affect the company’s continued existence.
• Limited Liability: When a member has fully honored the payment of his shares, he cannot be called upon to pay anything more towards the company’s liability.
• Capacity to Sue and be Sued: As a legal person, a company acquires the right to sue and be sued.
• Transferability of Shares: Only public companies have the legal mandate to transfer shares on the stock market.
  (Any five points @ 2 marks each = 10 marks)