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Article in student accountant says and I quote “one or more persons must subscribe their name to a memorandum of association”,and it says “Act allows a single person to form any type of company , either public or private”.
Two questions arise:
No.1 : what does term subscribe mean in above quoted statement?
No.2 : Promoters are people who undertake to form the company and who take necessary steps to form the company. Considering that a person acting purely in professional capacity cannot be a promoter , so , it is a member who forms a company and is a promoter when he instructs a person, acting purely in professional capacity to form a company. Bearing all that in mind and statements quoted from article in student accountant , why can not a public company have a single member in minimum?
Please explain.Well! Section 7 of the Companies Act 2006 states that “A company is formed by one or more persons ….” and nowhere through lots of other sections of the act do I see any requirement for a public company to have a minimum of 2 members.
So I am extremely grateful to you for pointing out this lapse!
Subscribe breaks down into “sub” which is a prefix meaning “under” as in submarine, and
“scribe” which is an old English verb ( rarely used nowadays ) meaning to write, or a noun explaining that a scribe is a writer, someone who writes.
The combination of sub with scribe tells us that these subscribers are people who have written their names and signatures at the foot of the memorandum of association
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