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Lavira, talented designer and her husband, Bismark are running a small business engaged
in the printing and selling oI silk scarves and ties. They are seeking to expand the
business and have persuaded Lavira`s parents to provide Iunds Ior expansion. Lavira`s
parents do not wish to participate in the day to day running oI the business nor do they
need an income Irom their investment, but they would like to be consulted on major
matters oI policy and to be able to recover their capital in the Iuture. Lavira and Bismark
wish to retain control oI the business but want to give Lavira`s brother, Mark who works
Ior them, greater involvement in the business.
Lavira and Bismark have decided to Iorm a company in which they will own the majority
oI shares and be directors.
They seek your advice about how to structure the company and to accommodate the
wishes oI Lavira`s parents, Mark and themselves.
....20 Marks

2. a) Why is the register oI members` alone not a reliable source oI inIormation about who
is actually entitled to the shares, or who can exercise control over them in a registered
...15 Marks

b) What is the purpose oI the 'share certiIicate which is issued aIter the allotment oI any
shares or debentures in a company?
...5 Marks

3. a) State and explain brieIly the two documents contained in the complete constitution oI a
registered company.
...15 Marks
b) What are the purposes oI a good system oI company law?
....5 Marks

4. An entrepreneur, irrespective oI nationality, can set up a business enterprise in a country
in accordance with the provisions oI the legal instruments pertaining in that country.
Explain the procedures and instruments involve in the Iormation oI Business Enterprise
by citizens and Ioreigners in your country.
... 20 Marks

5. BrieIly explain Iour major Ieatures oI a registered company.
....20 Marks