Private and Limited Companies

Some details of private and public limited companies.

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  • Created by: Niro
  • Created on: 11-05-11 20:28
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Limited Companies:
Owners of a limited company only have limited liability; this means that they only risk losing the
amount of money they have invested if the company gets in to debt. This is because the company
exists as a separate legal entity and therefore the owners are not personally responsible for the
debts of the business so personal assets are safe.
Private Limited Companies
A Private Limited is owned by a small group of people such as a family and can operate through one
director. They are not allowed to offer shares to the public and are not listed on the stock exchange.
They are usually small in size but are very expensive to set up.
Public Limited Companies
A public limited company is able to trade on the stock exchange but in order to gain plc status the
company must achieve the following;
Minimum share capital of £50, 000
Minimum of two directors
It's name must contain "plc" or "public limited company"
Secure a trading certificate from the Companies House

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