Explain the preliminaries incidental to promotion of a company.

• Ascertainment and determination of the company‟s name. This is necessary before the application or reservation of the name is made to the registrar.
• Determination whether the company is public or private. This is critical as it affects the contents of the articles of association.
• Determination whether liability is limited shares or guarantee. For trading companies liability is limited shares while non-trading companies are limited guarantee.
• Determination whether the company shall have a share capital. This depends on:o Whether liability is limited shares or guarantee.
o Intention of promoters.

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