14 January 2009
1. Can annual accounts of the Company be made up if the subscribers to the memorandum had not paid their contribution? 2. Can there be a memorandum of association without subscibers
14 July 2024
1. Yes, annual accounts of a company can be prepared even if the subscribers to the memorandum (shareholders) have not paid their contributions. The preparation of annual accounts is based on the financial transactions and operations of the company throughout the year. The subscribers' contributions (share capital) are recorded in the company's financial statements, but their non-payment does not prevent the company from preparing its annual accounts.
2. No, there cannot be a memorandum of association without subscribers. Subscribers are individuals who initially agree to form and become members of the company by signing the memorandum of association during the company's incorporation process. Their signatures signify their intention to form the company and subscribe to at least one share each. The memorandum of association is a foundational document required for the registration of the company, and it must be signed by at least one subscriber (in the case of private companies) or seven subscribers (in the case of public companies) to be valid and legally binding.
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