A case of Company Law Essay Example | Topics and Well Written Essays - 1500 words

A case of Company Law - Essay Example n Telecomms Plc, a public company limited by shares on the potential legal consequences of an anticipated complaint against its subsidiary company Mobilestoyou Limited, for loss of health and property by one of the customers of the subsidiary, under the provisions of Company Law. The Company was formed with 30,000 fully paid ordinary shares of â‚ ¤ 1 each subscribed by Peter, Paul and Mary While Peter and Mary pays the value of the shares by cash, Paul pays the cost of his shares by transferring the ownership of his 10 year old car to the company. The legal position with reference to the issue of initial shares is as under: The Act does not specify any minimum capital for the private companies. In the case of Newtown the company was formed with the authorized capital of â‚ ¤30,000 which is in violation of the provisions of the company law. The company should increase the authorized capital by passing an ordinary resolution (unless the articles of association require a special or extraordinary resolution). A copy of the resolution - and notice of the increase on Form 123 - must reach Registrar of Companies within 15 days of being passed. Hence the allotment of shares to Paul against the value of his cars does not pose a problem. However the company should file a form 88(2) showing the extent to which the shares are to be treated as paid-up. The form should also specify a brief description of the non-cash payment for which the shares were allotted usually the sole shareholder) the companies acts began to recognise that treating each company in a group as separate was misleading. Over time a number of provisions were introduced to recognise this fact. Facts of the case: Until 1979, Cape, an English company, mined and marketed asbestos. Its worldwide marketing subsidiary was another English company, named Capasco. It also had a US marketing subsidiary incorporated in Illinois, named NAAC. In 1974, some 462 people sued Cape, Capasco, NAAC and others in Texas, for