Limited Company
- Tags
- finance
An [see page 13, artificial person] created by the law with a separate life from its owners and a perpetual existence.
The company must take responsibility for its own debts and losses but its owners are granted limited liability. With restrictions placed on the withdrawal of equity.
Financial statements are publicly available annually.
It is governed by a board of directors elected by the shareholders.
The [see page 4, companies act] sets the rules for the corporate governance of new companies.
There're some assumptions about [see page 21, accounting] reports for companies.
Public vs Private
LLCs come in [see page 17, 2 variants]. See [see page 19, advantages & disadvantages] of listing.
A public company can offers its shares to the public (but don't have to) whereas a private company can only do so over-the-counter (through shares, bonds or currencies).
| Suffix | Status |
|---|---|
| ltd | Private |
| plc | Public |
With the minimum share capital (value of total shares) must be £50,000.00
Public companies must publish its financial statements on its website. Accounting standards
Shares
LLCs have the same sources of finance as sole traders or partnerships. The ordinary shares of companies are refereed to as [see page 14, equity shares] and they have a nominal value and a market value (on the stock exchange). Market capitalization is defined as the product of market value and issued shares.
Equity holders are entitled to vote at an see page 15, Annual General Meeting and recieve dividends. Shares for such a company can be [see page 16, sold] through a private placing or an offer for sale (publicly saleable).