Company formation. How many people does it take to start a company? Who are Shareholders, Directors and Officers? Shareholders are entitled to a share of profits of a company by way of dividends if declared, to share in surplus assets on liquidation and to receive a copy of the annual financial statements. The rights of shareholders, as embodied in the Memorandum and Articles of Association can only be altered by special resolution as prescribed in the Companies Act. An annual general meeting of shareholders must be held each year, within six months of the f inancial year end and within fifteen months of the previous annual general meeting. The business of the company is managed by its directors who are appointed in the first instance by the subscribers to the Memorandum and Articles of Association and, thereafter by the shareholders at the annual general meeting. A minimum of two directors are required for formation of a company. The powers of the company are vested in its directors as a board and are exercised at board meetings in accordance with procedures laid down in its Articles. Director’s fees are generally determined at the annual general meeting. Their fees and other remuneration must be disclosed in the annual financial statements. The acceptance of office of director carries with it the acceptance of certain duties towards the company. These duties are partly dependent on the law of persons in a fiduciary position (derived from the common law), partly regulatory (derived from the Articles) and partly statutory (derived from the Companies Act and other Acts). Companies are required to have at least one resident director. The Income Tax Act also requires that every company which carries on trade, has an office or has established a place of business in Zimbabwe, is obliged by the Zimbabwean law to appoint a public officer who is a Zimbabwean resident, within one month from the establishment of the business in Zimbabwe. The public officer is responsible for statutory requirements. Everything done by any public officer which he is required to do in his representative capacity shall be deemed to have been done by the company which he represents. Who is your trusted financial advisor? Call us for help! 0773468962 AoDZ-inspire.inform.ignite
Posted on: Wed, 13 Aug 2014 06:45:21 +0000
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