These are simplified company law to help the student to prepare for his or her CPA exams.

This Company law intermediate level revision kit.“Revision is the process by which you remind yourself of the material you have studied during your course, clarify any problem areas and bring your knowledge to a state where you can retrieve it and present it in a way that will satisfy the examiners

Promotion is conducted by persons who come up with the idea to form a company. A promoter is the person who conceives the idea of forming a company and who undertakes, does and goes through all the formalities and incidental preliminaries of incorporation. Legal position of the promoters A promoter is not an agent of the company during formation because the principal (company) does not legally exist. A promoter is not a trustee of the company during formation because the beneficiary doesn’t exist. Promoters are fiduciaries of the company with regard to formation. They have on their hands the creation and molding of the company. This is an equitable relationship based on trust, confidence and good faith. It imposes upon the promoter certain equitable or fiduciary obligations.

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply and comply with the provisions of company law in relevant circumstances and environments.