In forming a company, its shareholders may seek to minimise the liability of the company and themselves to creditors
The term company is an association of many persons who contribute money or money’s worth to a common stock, and to employ it in some common trade or business, and who share the profit or loss arising there from” Black law dictionary(2004) 8th edition at page 846 also defines the term company as a corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing. Company is also define to mean a group of persons associated together for the attainment of a common end, social or economic or a voluntary association of persons or individuals formed for some common purpose. The company starts its breath after its registration, Section 14 provides for the registration of the Memorandum and Articles of Associations. After the documents have been registered the companies acquires the legal