COMPANY LAW

PLEASE PROVIDE DETAILED ANSWERS AND DO NOT PLAGARIZE OR COPY. PROVIDE A 7 PAGE ANSWER.

Mark has been practicing as a sole proprietor for the last two years. Mark is a milk processor in Uasin Gishu County. His chief competitor is Alicia who has been in the industry for only one year, also as a sole proprietor. Alicia is passionate about modern technology of milk processing. Mark and Alicia have decided that they want to work together, but are unsure as to which business structure would be the most appropriate for their circumstances. They have approached you seeking advice with regard to which entity would best suit their needs. They have indicated that they want the entity to have the below characteristics: They wish to avoid significant levels of formality and regulation They want to have flexibility in establishing the procedures by which the business is to be run They want to be able to run their affairs in private They want to avoid personal liability for the debts and liabilities of the business The process of creating the business should be relatively cheap and quick They do not want to invest significant amounts of their own capital in setting up the business and will probably wish to raise capital from outside sources They wish to take on employees.

Discuss to what extent the various corporate structures fulfil the above aims and advise Mark and Alicia on how to go about registering the most suitable business structure, their liabilities as founders and the proposed management structure (30 Marks)