Company Formation - Classes Of Company

This is the first in a series of articles to be posted. Later submissions will deal with more detail.

The Companies Act Cap 40:01 of the Laws of Botswana as amended by Statutory Instrument No. 7 of 1995 regulate the constitution, incorporation, registration, management, administration and winding up of companies and the associations and for other purposes incidental thereto.

The Act provides for the formation of two types of companies i.e. a company having a share capital and a company not having a share capital (a company limited by guarantee). A company having a share capital may be either a public company or a private company having shares of par value or having shares of no par value. A company not having a share capital limits the liability of each of the members to such amounts as he or she undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member or within one year afterwards. The amount in question may not