By Roger Mason
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It is optional in private companies. • Public companies must have at least two directors. If permitted by their articles (which Table A does not), a private company may have a sole director. • Written resolutions of the members are only available to private companies. • 5. There are different model articles. Can a company start trading (or operating) as soon as it has been registered? A private company can start trading (or operating) immediately. A public company may only do so when a certificate entitling it to commence trading has been issued by the Registrar.
When a CIC is wound up its residual assets are not distributed to its members, as in the case of a normal company. Instead, they pass to another suitable organisation that has restrictions on the distribution of its profits, for example another CIC or a charity. 7. A regulator has been appointed to police and generally supervise CICs. The regulator approves applications for CIC status and has powers to investigate alleged abuses of CIC status. He can remove directors, freeze assets and apply to the court for a CIC to be wound up.
What exactly is meant when it is said that a company has a separate legal personality? An incorporated company has a legal existence separate from the legal existence of its members. It can own property in its own name and it can sue and be sued in its own name. It can in some circumstances sue and 461-501 • 430-460 • 367-429 • 343-366 • 322-342 • 289-321 • 234-288 • 185-233 • 96-184 • 37-95 • 1-36 11 be sued by its members. The principle that a company has a legal existence separate from that of its members was confirmed by the case Salomon v Salomon and Co Ltd 1897, one of the most celebrated cases in company law and possibly well known to you.
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