A nominal partner is a partner in the business who has no actual interest in the trade or its profits. However, the person allows his/her name to be used in the business. A nominal partner holds himself/herself out to the world as having an apparent interest in the business. A nominal partner will be liable as a partner, because of the false appearance the person holds before the world.
The minimum number of members in a private limited company is _________.
Memorandum of association of a firm contains rules regarding the constitution and activities of the company. Memorandum of Association (MOA) is a legal document which specifies the scope of business activities of the company and information about shareholding of the company. The MoA is a document prepared for the Company registration procedure.
The liability of shareholders of a public company is limited to the _________.
The liability of shareholders of a public company is limited to the paid up value of shares. "Limited by shares" means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company.