Explain the features of a company and the procedure for incorporating a company under the Companies Act No. 7 of 2007.
How to lay out the answer. Follow the frame, then write it in your own words.
1 · Open in two lines. A company is an artificial legal person created by registration under the Companies Act No. 7 of 2007.
2 · Features.
Separate legal entity (Salomon v Salomon & Co Ltd).
Limited liability; perpetual succession; own property and sue.
Transferable shares; management separate from ownership.
3 · Types. Limited by shares, by guarantee, unlimited; private and public; overseas companies.
4 · Draw the registration flow. [Diagram: name → documents → filing → registration → certificate]
5 · Explain each step. Name approval; application with directors' and secretary's consents and articles; filing with the Registrar-General; certificate of incorporation.
6 · In Sri Lankan business. Listed PLCs such as Dialog and Hayleys; a family bakery incorporating as (Private) Limited.
7 · Close in one line. The certificate of incorporation turns a business plan into a legal person.
Scoring tip: Salomon v Salomon is the one case every company answer should name.