You recently received your license as a Chartered Secretary working in private practice. Mapat Limited (‘Mapat’) is a private limited company which is limited by shares and has an issued share capital of ¢12,000. The company’s accounting reference date is 31 December.
Mapat has one director, Mr Tutu. Mrs Tutu (Mr Tutu’s wife) acts as company secretary, a post she has recently taken despite having no formal experience. A friend of Mr Tutu has suggested to him that, as the business is growing, he should consider re-registering it as a public limited company (‘plc’).
Mr Tutu is the sole shareholder of Mapat and needs to know if another shareholder will need to be found as part of the re-registration. Mr Tutu has asked you to advise him on the matters set out below: (a) i. In which areas may Mapat not meet applicable statutory requirements for it to re-register as a plc? (3marks) ii. What can be done to resolve the situation? (2 marks) iii. Provide an outline of the statutory steps, procedures and approvals, and applicable timescales, which would be required to effect the re-registration and provide a response to Mr Tutu’s enquiry about the number of required shareholders. (6 marks)
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