Company Law

NKUMBA UNIVERSITY
SCHOOL OF BUSINESS
ADMINISTRATION
NAME. : MANGENI JORDAN

JOSEPH
COURSE. : BBA
COURSEUNIT. :. COMPANY LAW
Index no. :
2021/FEB/BBA/B01961/ EVE
STUDENT No. :. 2100101961
LECTURER :. MR. OKEBE NATHAN
Discuss the various consequences a
company under goes during it’s
formation.
When a company is formed, it

undergoes various consequences on
different levels, such as legal, financial,
operational, and strategic aspects. Here
are some of the consequences a
company goes through during its
formation.
1. Legal Consequences: Forming a
company means establishing a legal
entity, which has its own rights and
responsibilities. A company can sue or
be sued, own property, pay taxes, and
sign contracts. The company's activities
are regulated by the country's
commercial laws and legal frameworks
that define the type of business
structure, registration process, and
compliance requirements.
2. Financial Consequences: The
financial consequences of forming a
company involve investments, capital,
revenues, and profits. A company
requires capital to start its operations,
purchase assets, hire employees, and
fund its growth strategies. The investors
who provide capital to the company are
entitled to a share of profits and may
also have voting rights.
3. Operational Consequences: After

the company is formed, it should
perform its operational activities
efficiently and effectively to achieve its
objectives. This may involve setting up a
management structure, hiring skilled and
experienced staff, developing processes
and procedures, and implementing
systems to manage and control the
business operations.
4. Strategic Consequences: As the

company grows, it needs to develop a
strategic plan that aligns with its goals
and objectives. This includes identifying
its target market, its competitive
position in the industry, and its value
proposition. The company's strategy
should also outline how it plans to
achieve its goals and objectives and
what resources will be required to do so.
5. Taxation Consequences: Forming a

company also has taxation
consequences. A company is required to
pay various taxes, such as corporate tax,
payroll tax, and value-added tax (VAT).
The company's profits are subject to
corporate tax, and the employees'
salaries are subject to payroll tax.
Additionally, if the company sells goods
or services, it may be required to charge
VAT.
In conclusion, forming a company

creates a legal entity with various
financial, operational, strategic, and
taxation consequences. Understanding
and managing these consequences are
crucial for the long-term survival and
success of the company.
Discuss the law relating to the office
of the company secretary
The office of the company secretary

is governed by various laws and
regulations. The company secretary is a
key officer of the company who is
responsible for ensuring that the
company complies with its legal and
regulatory obligations. The following are
some of the laws relating to the office of
the company secretary:
1. Companies Act, 2013: The
Companies Act, 2013 lays down the
duties and responsibilities of the
company secretary. The Act requires
every company with a paid-up share
capital of Rs. 10 crore or more to
appoint a full-time company secretary.
The Act also requires the company
secretary to maintain the statutory
registers and records of the company.
2. SEBI (Listing Obligations and
Disclosure Requirements) Regulations,
2015: The SEBI (Listing Obligations and
Disclosure Requirements) Regulations,
2015 require listed companies to
appoint a qualified company secretary as
the compliance officer. The compliance
officer is responsible for ensuring that
the company complies with the listing
regulations.
3. Securities Contracts (Regulation)
Act, 1956: The Securities Contracts
(Regulation) Act, 1956 requires every
stock exchange to appoint a company
secretary. The company secretary of the
stock exchange is responsible for
ensuring that the exchange complies
with the provisions of the Act.
4. Secretarial Standards: The Institute

of Company Secretaries of India (ICSI)
has issued Secretarial Standards which
provide guidelines for the office of the
company secretary. The Secretarial
Standards cover areas such as board
meetings, general meetings,
maintenance of statutory records, and
communication with stakeholders.
In summary, the office of the

company secretary is governed by
various laws and regulations, and the
company secretary plays a crucial role in
ensuring that the company complies
with its legal and regulatory obligations.
References.
a. Bhide, A. (1999). The origin and evolution

of new businesses. Oxford University Press,
USA.
b. Baron, R. A., & Tang, J. (2011). The role of

entrepreneurs in firm-level innovation: Joint
effects of positive affect, creativity, and
environmental dynamism. Journal of Business
Venturing, 26(1), 49-60.
c. Kirsch, D. A. (1997). The effect of

environmental conditions on the performance
of corporate ventures: An analysis of corporate
venture capital activity. Journal of Business
Venturing, 12(2), 119-145.

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NKUMBA UNIVERSITY

NAME. : MANGENI JORDAN

When a company is formed, it

3. Operational Consequences: After

4. Strategic Consequences: As the

5. Taxation Consequences: Forming a

In conclusion, forming a company

The office of the company secretary

4. Secretarial Standards: The Institute

In summary, the office of the

a. Bhide, A. (1999). The origin and evolution

b. Baron, R. A., & Tang, J. (2011). The role of

c. Kirsch, D. A. (1997). The effect of

Venturing, 12(2), 119-145.

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