Shreena and Gita wish to run a business buying and selling organic vegetables. They have decided to set up a private company limited by shares and are thinking of calling their company ‘VegRus’. They will be the subscribers and the first directors of the company. They have already found premises but the owner is insisting that a contract to lease the premises is signed immediately, despite the fact the company will not be registered for about four weeks.
Advise Shreena and Gita what documents will have to be delivered to the Registrar of Companies before a certificate of incorporation of the company is issued, any restrictions on choice of name of the company, and any liabilities they may personally incur if the lease is signed before the company is incorporated.