Part 2: Company formation and administration

Having considered the information in the report and your advice, a few days later Hannah decides that she wants to set up a private limited company. She intends for the company to issue 10,000 ordinary shares with a nominal value of 10 each. Hannah will own 5,200 shares. Sam and Vera will own 1,000 shares each. The remaining 2,800 shares will be owned by Max and Hakim Plumbing Ltd.

Hannah has decided to name the company Hansimi Pet Supplies Ltd and use the Model Articles of Association. The companys registered address will be 17 Waddle Road, Waddle Town, postcode TMA01 Q2 in the UK.

Hannah returns to you for some further information about the duties of company directors and advice on filling in the application form (Form IN01).

Required:

Write a note for Hannah specifically addressing the following:

• a.In respect of company directors,
  • i.describe the roles of the four different kinds of company directors, and
  • ii.give advice on whether it is possible, and why it may or may not be useful, for Hannah, Sam and Vera to all be directors of Hansimi Pet Supplies Ltd.

  Use no more than 150 words.

  (5 marks)

• b.Using the detail in the question, indicate how Hannah might fill in Parts 1 to 3 and Part 5 of the application form (Form IN01). Add a brief explanation where necessary.

  Use no more than 250 words.

  (10 marks)

• c.Explain
  • why companies must keep a register of people with significant control
  • in what ways this is relevant to Hansimi Pet Supplies Ltd.

  Use no more than 150 words.