Ready made companies
A ready made company is one set up by registration agents or solicitors for the purpose of transferring it to their client when required. For many years the ready made company was an invaluable device, enabling a new project to be incorporated very quickly or a contract entered into in a company's name, etc. without waiting for the company to be incorporated. While the practice is not completely obsolete, the use of ready made companies has declined since electronic registration of companies was introduced.
A ready made company should always be a brand new company, certified as never having conducted any trade or business and having no liabilities. It should not be a company that has previously traded or been used for any purpose.
The company will have been registered using nominees as the subscribers and as the first director. In many cases the nominees, as the members or directors of the company will pass resolutions before transfer effecting such changes as the client may require, such as a change of name, adoption of special articles of association, etc.
The company is transferred by the existing director appointing the new ones and then resigning. The subscribers' shares must be transferred to the new shareholders and this should be shown in the company's register of members. The transfer will require a stock transfer form. Attempts to avoid this, e.g. by the subscribers purporting to waive their rights to their shares are suspect and should be avoided.
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