Question

Question Two (2) [25 Marks]

a) Profit companies continue to exist in company law, with that said, list and distinguish (with all
abbreviations) five profit companies.
(10 Marks)

b) Sally Smith has recently endorsed all relevant documents to support her application to start her
own private company. Sally is only left with the certificate to commence business to be issued to
her by the Registrar of companies in Windhoek, an Australian supplier is interested in supplying
Sally with oak timber for her new business. Sally successfully partners with the Australian
supplier, meanwhile the certificate to commence business has not yet been issued to Sally.
Discuss and motivate your answer as to whether the above contract constitutes a preincorporation contract or not, fully supporting your answer.
(15 Marks)

Answer 1

Profit companies continue to exist in company law because companies Registered under company law is bound to follow the rule and regulations framed by the Company law and therefore the companies functions and transactions are monitored by competent authority. The companies financial statements and other informations are available for their stakeholders and shareholders.it ensure the stakeholders and shareholders that the company is working properly and their stakeholders are interested to take share and ready to invest in the company instead of other organizations.

Five profit companies are as follows

1.Reliance industry ltd.

2.vodafone ltd

3.bharti Airtel

4.Tata consultantancy services

5.Mother Dairy fruits and vegetables ltd