Kategoriak: All - companies - funding - liability - directors

arabera mark jenkins 17 years ago

296

Companies

Limited companies possess a distinct legal identity, requiring adherence to extensive formalities which can consume significant management time. These entities are distinguished by their ability to sell shares privately, thereby reducing financial risk for investors and facilitating easier growth funding and a wider range of borrowing opportunities.

Companies

Companies

Public limited company (PLC)

Shareholders may focus on the short term
May lose control of the business
May be vulnerable to takeover
Greater admin costs
Must keep a wide range of people informed
Cost of floatation is high
May have better reputation from Stock listing
May have even better access to credit and very large amounts of finance

Limited Companies ( LTD)

Shares can only be sold privately
Must conform with extensive formalitiestakes up management time
Accounts must be audited
Funding growth easier
Wider range of borrowing opportunities
Company sued in own name
Financial risk for investors reduced

Shareholders of limited companies are often directors

Limited companies are often family owned

Gaining legal company status

issued with certificate of incorporation
Articles of association
frequency of meetings
roles of directors
rights of shareholders
Memorandum of association
athorised share capital
objectives
Company name

Have limited liability

Owner is only liablefor what they have invested in the business and no more

Are incorportated

Have a legal identity