COMPANY LAW

Company Law

Company Law

Introduction

Decision making process is the most crucial activity in maintaining the business growth of a company and it becomes more significant when the decision is related to selection of financial plan i.e. where to borrow capital, what is the cheap source of borrowing it along with the long term advantages and disadvantages of selecting a particular financing option. The financing options are most crucial in a manner that there are a huge large number of legal requirements for the companies which needs to be fulfilled in order to borrow the desired and required funds.

Therefore, in order to attract more funds to finance their expansion plan Alethra Brotherton and her partner has decided to borrow funds either from Expansion Capital Plc., or with the bank. These both option are filtered after a long and lengthy discussion between the partners, company finance manager and the accountant. Alethra needs to comply with certain legal issues prior to file an application to attract funds from bank or from Expansion Capital. Documentations According To Company Act 2006

Financial Documents

Incorporation Letter of the company

Details documentation of company secretaries

Company Guarantees if apply

Shareholders Written consent Resolution

Approved Shares certificates

Audited Accounts Statements

Total share composition documentation & Details

Registered Share Capital composition documents

Memorandum of Articles & Memorandum of Association

The documents and legal procedures which need to be prepared are based on the company financial position in the market. Documents of legal nature are of crucial and integral importance for example: if Alethra Brotherton agreed to finance its cosmetic business plan through Expansion Capital, she needs to prepare a 5 years long vision and mission in practical terms i.e. where the company is now and in 5 years what would be its future? She needs to prepare a statement of affairs (Balance sheets).

Alethra Brotherton's company is a listed company and therefore it needs to fulfill a number of legal documents if they select the option if financing through banks. On the other hand, there are a large number of positive aspects of financing the operations through bank. But the company needs following Documents:

Required Documents

Audited Accounts & Statements of Financial Affairs

Need to have a healthy capital structure

Prior Financial results and Market reviews

Credit standing of the company

STATUTORY REQUIREMENTS

Memorandum of Articles

Memorandum of Association

Name & details of all the company Directors along with their other occupations

Reports of Company Auditors, Company Lawyers, investment relation advisor

MARKET REQUIREMENTS

Company incorporation Certificate

Market capitalization along with the details of Outstanding shares.

Number of shares in the hands of public along with the major share holdings.

Disclosure of company statements, Financial reporting, Director Affairs.

In order to borrow money from Banks through security mortgage are as follows:

Property documents

Legal docents of the said asset or property derail documents.

Lease & Property title document

Tax and duty details.

There are some advantages and disadvantages but according to the legal documentation and requirements it is easy to borrow money from Expansion capital because it is a purely commercial institution developed for financing these businesses specifically, those who need capital for ...