Business law

5. Ryan is an ambitious amateur theatrical director who sees a future in commercial promotion of small-scale amateur dramatic productions. The actors will be paid a small fee only but he expects that the business will be profitable. Ryan has been told of the various forms of business organisation, and he asks your advice about the formation of a company. He envisages that a number of his friends would be prepared to invest substantial sums of money, and that 40 or more theatrical acquaintances will be prepared to make a nominal investment as a gesture of support.

(i) Can Ryan form a proprietary company?

(ii) Can Ryan form a no liability company?

(iii) The new company will need a registered office why is this important?

iv) Ryan suggests that the company does not need a common seal or a name is he correct?