- 5 Marks
Question
Harddin Limited has informed you of its intention to invite the public to acquire its securities and to deposit money with it for a fixed period payable at call.
You are required to:
Explain TWO conditions that Harddin Limited must fulfill to achieve its proposed plan.
Answer
- Register as a Public Company: To invite the public to acquire its securities, Harddin Limited must register as a public company under the Companies and Allied Matters Act (CAMA). This allows the company to offer its shares to the public either by being quoted or unquoted on the stock exchange.
- Register as a Bank or Statutory Body: Harddin Limited must register as a bank or a statutory body established by an Act of the National Assembly. This registration enables the company to accept public deposits and issue its own securities, including promissory notes, bills of exchange, or other instruments.
- Topic: Company Law
- Series: MAY 2013
- Uploader: Theophilus