MONO-CROPPING SYSTEM OF FARMING, Definition: Mono-cropping is defined as the practice of cultivating a single crop species each growing season and harvesting it before another crop is planted. In this system, one is sure of planting one crop in one season and planting a different crop in another season on the same piece of land after the first one must have been harvested. For example, a farmer cultivates maize crop on one season and then cultivates groundnut in another season after the maize crop have been harvested.
where can mono-cropping be practiced
this is usually carried in areas with enough agricultural land that is arable. remember mono-cropping is good where you have abundant farm land. land tenure system that practiced in some parts of Africa can be a major problem to mono-cropping system of farming. this type of farming system is mainly se3en in large scale farming, industrial farming, and commercial agriculture. in mono-cropping system of farming, crops like tomato, maize, groundnut, orange or pepper can be cultivated
TYPES OF COMPANIES
(1) Unlimited liability companies: In an unlimited liability company, the liability of a member is limitless and he may be liable to the full amount of the company’s debts in the event of liquidation. The members will contribute more money, including their capital, to settle the debt of the company. Section 21(1) of the Company and Allied Matters Act defines it as one not having any limit on the liability of members.
- Limited liability companies : In the case of limited liability companies, the liability or burden of debt in the company is limited to the amount of share capital the shareholders had agreed to contribute individually in the event of liquidation. In this case, a shareholder cannot suffer the liability of the company up to his or her private property.
Types of Companies Under Limited Liability Companies
Companies limited by guarantee: Companies limited by guarantee are not formed with the aim of engaging in trading activities or making profits. They are often formed by societies and other charitable contributions from members of the public to promote and develop certain interests or professions. The liability of its members is limited by the Memorandum of Association to such an amount as the members may have undertaken to contribute to the assets in the event of its being wound up. Guarantee companies are usually formed for the furtherance of art, science, education, religion and charity.
Memorandum of Association
Definition: Memorandum of Association is a document forming the constitution of a company and defining its objectives and powers with regard to its dealing with the outside world. It is the document containing the rules and regulations which govern the external relationship of a company with outsiders. Once registered, the memorandum becomes a public document.
A Memorandum of Association contains the following information:
- The name of the company, which must end with the word “Limited” or “Plc”
- The registered office of the company.
- The objectives of the company.
- The amount of authorised capital and the various shares into which it is divided.
- A declaration that the liability of the members are limited.
- The names of founders of the company.
- Status of the company, that is, private or public.
- The restriction, if any, on the power of the company.
Articles of Association Definition: Articles of Association is a document in which the regulations which govern the internal management of the company’s affairs, the duties, rights and powers of the shareholders are stated. It complements the memorandum of association. However, where there is conflict between the two documents, the memorandum prevails.
The contents of an Article of Association include:
- The method of issuing capital.
- The method of holding meetings.
- Definition of powers and duties of directors.
- The right of shareholders.
- How directors are to be elected.
- How auditors are to be remunerated
- Method of sharing dividend.
- Transfer and forfeiture.
- Method of auditing the account o business.
Definition: A prospectus is a document issued by the public limited companies only inviting’ public to subscribe for shares of the co A copy of such a prospectus, signed by the directors or proposed directors in writing, be filed with the registrar of companies Company Act defines it as: “Any notice, circular advertisement which invite the public subscription or purchase of shares company.”
Content of a prospectus
The content of a prospectus include:
Particulars of the company’s past hi
Information about the present position future prospects of the company.
The amount of capital offered subscription.
Particulars of directors and other officials
The date of opening the lists.
The nature of capital offered subscription.
Amount payable on application allotment on each share.
The number of founders’ shares.
Step 4: After going through the documents registrar of companies then issues certificate of incorporation to the company gives the company the powers to commence business.
Step 5: A private limited company can commence business after receiving the certificate of incorporation, but a public liability company cannot commence until it receives the certificate of trading.