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Published byConrad Marsh Modified over 8 years ago
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FORMS OF BUSINESS ENTERPRISE
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FORMS OF ENTERPRISE Sole proprietorship Partnership Close corporation Company Public Private SOC, NPC, INC
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PARTNERSHIP 2-20 persons Contribute money, labour or skill to a common stock Carry on lawful business Aim to make a profit for benefit of the partners
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ELEMENTS OF A PARTNERSHIP A valid contract Contribute to a common stock (pooling of resources) Carry on business to make a profit All partners to share – not necessarily equally
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TYPES OF PARTNERSHIP Ordinary partnership – all partners jointly and severally liable Extraordinary partnership - different types Anonymous – (silent or sleeping partner)
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RIGHTS & DUTIES OF PARTNERS Use partnership property properly Duty of good faith Access to books Share profits and losses Reimbursement
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TERMINATION OF PARTNERSHIP End of agreed period Agreement Completion of purpose Death or retirement Insolvency Change in partners Sale of business By court
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CLOSE CORPORATIONS No new CC’s Reasons for CC
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COMPANIES 2008 Companies Act Advantages Limited liability Perpetual succession Separation of ownership & control Able to sue & be sued in own name Lifting & piercing of the corporate veil
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COMPANIES Sec 21 allows pre-incorporation contracts Founding document is the MOI – sets out relationships Company & shareholders Company & directors Company & other internal parties Company & third parties
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TYPES OF COMPANY Profit company Public, private & personal liability State owned Non profit company
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BOARD Board of directors has a duty to manage the company Appoints board members Notice of meetings – 10 days/15 days Videoconferencing etc AGM Appointment of a proxy
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RESOLUTIONS Ordinary – 50% of voting rights Special – 75% of voting rights See page 142 for when
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DIRECTORS Ownership vs control Directors vs managers Managers implement strategy, policy & board decisions Directors set vision, strategy, direction of company Disqualifications Duties Types – executive & non - executive
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