SCENARIO
Evelyn, Francis and George, run a business buying and selling wigs. They have been advised by their lawyer to form a private limited company to run the business. They have contacted you for a second opinion, particularly in respect of:
The extent to which their liability will be limited;
Whether they will be able to exercise the same control over the private company as they did with the partnership;
The extent to which they will have the same right to be involved in the management of the private limited company; and
The public disclosure to which the business would be subjected to as a private limited company.
Having discussed these aspects with specific reference to the Companies Act, 2019 (Act 992), advise them of the choice they should make between the two alternatives, or any other options available to them.
Answers: 1
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