Lesson Notes By Weeks and Term - Senior Secondary School 2

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  4. Limited Liability Company III

Term: 1st Term

Week: 6

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:    Commerce

Topic:-      Limited Liability Company III

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Describe how the company is formed
  2. List and explain the necessary documents for the formation of Limited Liability Companies

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on Limited Liability company

Students pay attention

STEP 2

EXPLANATION

She describes how a Limited Liability Company is formed

Students pay attention and participates

STEP 3

DEMONSTRATION

She lists and explains the necessary documents for the formation of a Limited Liability Company

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

HOW A LIMITED LIABILITY COMPANY IS FORMED

The company is formed when the promoters follow the legal provisions companies and Allied Matters Decree of 1990. The promoters are those that conceive the business idea, initiates the company, and draft the documents required by the Corporate Affairs Commission(CAC)


DOCUMENTS FOR THE FORMATION OF A LIMITED LIABILTY COMPANIES

  1. Memorandum of Association

This is the constitution of a company, which governs the relationship of a

company with the outside world. It contains the regulations of the company

in connection with its dealing with the outside world. 

CONTENTS OF MEMORANDUM OF ASSOCIATION

  1. NAME OF THE COMPANY: The name of the company will be stated and followed by the word ‘limited’ or ‘ltd’.
  2. THE OBJECTS OF THE COMPANY: It will set out the object of the company. The reason for the formation and the kind of business to be embarked upon should be stated.
  3. LIMITED LIABILITY: It will be expressly stated that the liability of numbers will be limited to the amount invested.
  4. AMOUNT OF AUTHORIZED CAPITAL: The memorandum will state the total value of nominal capital which the company is registered.
  5. STATUS OF THE COMPANY: It will state the states of the company whether a private or public.
  6. REGISTERED OFFICE: The registered office of the company should be stated i.e, the head office address.

 

  1. ARTICLES OF ASSOCIATION

This is a document, which prescribes the rules and regulations governing

the internal working of the company. It contains the internal rules for

conducting the business of the company. It may be altered with the

agreement of majority shareholders. 

CONTENTS OF ARTICLES OF ASSOCIATION

  1. Right of shareholders.
  2. Remuneration of auditors.
  3. Conduct of general meeting.
  4. Names and powers of directors.
  5. Appointment of directors.
  6. Transfer and forfeiture of shares.
  7. Auditing of accounts.
  8. Payment of dividends.

 

  1. STATUTORY DECLARATION

This is a statement of declaration that the

promoters of the company have fulfilled all the necessary requirements for

the formation of the company

EVALUATION:   1. How is a Limited Liability Company formed?

  1. State and explain the documents required for the formation of a Limited Liability Company

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively