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16. Company Law I  

Formation and Finance

This chapter explains how companies limited by shares are formed and looks at the contents of companies’ constitutions. The discussions cover the role of promoters in setting up a company and the meaning of a company ‘off the shelf’. The chapter examines the steps and documentation necessary to register a new company limited by shares and the rules relating to a company’s name. It discusses the constitutional documents of a company and the rules relating to its constitution. The chapter concludes with a discussion of the financing of companies. It examines the different types of shares and the issuing of shares. It also considers debentures and charges.


This chapter considers the process by which a limited company is formed and the steps required both for and following its formation. It also looks at the related changes which can be made to a company’s main features. The process of registering a company is governed by the Companies Act 2006.