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Companies Act 2006

Section 7: Method of forming company

29.This section replaces sections 1(1) of the 1985 Act. It retains the current requirement that individuals who wish to form a company must subscribe their names to the memorandum of association (“memorandum”). Subsection (1) introduces the new provisions about forming a company. In line with the recommendations of the CLR, it is provided that a single person is able to form any sort of company (not just a private company) (Final Report, paragraph 9.2).

30.Subsection (2) reproduces the existing requirement that a company may not be formed for an unlawful purpose.

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