PART B

Question 1

State laws influence how companies are formed and how shareholders may purchase a
portion of the firm. Among the corporation's advantages is No exposure. Investors are
entirely responsible for the value of their holdings. As a consequence, the company protects
their personal assets. This is a really useful tool for firms that often take on large risks.
Funding source. A publicly listed corporation may raise significant quantities of money by
selling shares or bonds. A share market facilitates the purchase and sale of the corporate
stock. Titles are exchanged. Individual shareholders may easily sell shares in a publicly-
traded firm, but it is more difficult when the company is privately held. Endless life. A
company's lifetime is uncapped since ownership may be handed down across generations.
Pass. Incorporated companies do not pay income taxes since profits and losses are distributed
to shareholders.No one can dispute the value of a corporation to you and the company.
Despite these flaws, it remains a viable alternative. As a business owner, be aware of the
positive and negative aspects of the company. This is only possible if one wants to determine
whether a company is good for the firm. When a company files taxes, the task gets more
difficult. They must tax gains distributed to shareholders. Shareholders will only be taxed
once for all corporate profits. All of that is called "double taxation." Although even though
one never sell the firm, potential buyers will be scared. But this can be quickly remedied.
Choosing "Esteemed Organization" over "Limited Company" as their tax category. Everyone
benefits from the scenario.

Question 2

While attending a company's General Meeting, an auditor must be granted the same rights as
a company member, including the ability to receive all meeting notifications and other
information. The board of directors, auditors, and company secretary are all responsible for
notifying shareholders of a general and statutory meeting of the business's owners. Notice of
the Board meeting must be given to any director who is disqualified from serving as a
director of a firm. When it comes to doing business, most companies have an annual general
meeting (AGM). Directors are elected, dividends are paid, and the auditors are hired at a
meeting.– Every company, save for one-person firms, must have an annual general meeting.
A general meeting is held once a year. Meetings, in general, need to have a quorum in order
to do business. The quorum must be present at all times, not only at the beginning of the
meeting. To be considered valid, general meetings must have at least one participant present.
Only those who show up may fulfil this requirement. Except for One Person Companies, all
MCA-registered businesses must have annual general meetings. For official documentation
purposes, minutes must be kept. It is presumed that a meeting occurred if the minutes are
correctly kept. Regardless of whether a company is publicly listed or privately owned, it must
have an annual general meeting. Directors and shareholders voted on critical matters, such as
the company's strategic direction and audited financial records, which are presented to the
shareholders during the annual general meeting.

QUESTION 3

Although there are some parallels between a Corporation and a non-profit organisation, they
are not always the same. Some comparisons and contrasts between a non-governmental
organisation and a business registered under the companies act will also be highlighted. Both
companies and non-profits prioritise charity (NGOs). A non-profit or a limited liability
company's profits are exempt. When a firm or organisation closes, its mission must be
transferred to another. Members do not inherit a defunct company's assets. 501(c)(3)
organisations and limited liability businesses
No money may be earned by an Incorporated Trustee. Before registering with the Corporate
Affairs Commission, corporations must satisfy certain conditions (CAC). A trustee who is
incorporated is exempt from this requirement. Unlike an LLC, an incorporated trustee must
be disclosed. Limited liability companies need a Memorandum and Articles of Association,
whereas incorporated trustees require a registered constitution.