Upendo Company was registered five years ago as an unlimited company. Its main object was to offer humanitarian services to the less privileged members of the society. The company has since grown into a large undertaking. The members wish to convert the company into a limited company and seek your legal advise Advice the members on the following; i. The procedure to be followed in converting the company from an unlimited company to a limited company. ii. The legal effect of such a conversion on the right and liabilities of the members.

Circumstances under which a company shall be deemed a subsidiary of another company

Where the composition of its board of directors is controlled the other company.
Where the other company holds more than a half in nominal value of its equity share capital
Where one company is a subsidiary of any company that is another’s subsidiary.