Limited company
From Wikipedia, the free encyclopedia
| Image:Scale of justice 2.svg |
| Companies law |
|---|
| Basic forms: |
| Sole proprietorship |
| Partnership (General · Limited · LLP) |
| Corporation (LLC) |
| Cooperative |
| United States: |
| Business trust LLLP · Series LLC Delaware corporation Nevada corporation |
| European Economic Area, including European Union: |
| SE · SCE |
| United Kingdom / Commonwealth / Ireland: |
| Limited company (By shares · By guarantee) (Public · Proprietary) Community interest company |
| Civil law countries: |
| AB · AG · ANS · A/S · AS |
| K.K. · N.V. · OY · S.A. · GmbH |
| Doctrines |
| Corporate governance |
| Limited liability · Ultra vires |
| Business judgment rule |
| Internal affairs doctrine |
| De facto corporation and corporation by estoppel |
| Piercing the corporate veil |
| Rochdale Principles |
| Related areas of law |
| Contract · Civil procedure |
A limited company in the United Kingdom is a corporation whose liability is limited by law. There are three main types of limited companies which are set up by the Memorandum of Association & Articles of Association:
- private company limited by shares (Ltd.)
- Similar to Pty. Ltd.
- private company limited by guarantee
- This type of company does not have share capital but is guaranteed by its "members", who agree to pay a fixed amount in the event of the company's liquidation. Frequently charities incorporate using this form of limited liability. Another interesting example is the Financial Services Authority.
- public limited company (PLC).
- Public limited companies can be publicly traded on a stock exchange (similar to the U.S. Corporation and the German AG).
A shareholder in a limited company, in the event of its becoming insolvent (equivalent to bankruptcy in the US) would be liable to contribute the amount remaining unpaid on the shares (usually zero, as most shares are issued fully paid). 'Paid' here relates to the amount paid to the company for the shares on first issue, and not to be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability.
A limited company can be registered in England and Wales, Scotland or Northern Ireland. The registration of companies in Great Britain (England, Scotland and Wales) is done through Companies House. The registration of companies in Northern Ireland is done through the Department of Enterprise, Trade and Investment.
[edit] See also
- Company Formation The UK Process for forming a new Company
- Unlimited company
- Corporation Corporations in general
- Limited liability company (LLC) United States
- Limited liability partnership (LLP) United States
- Share capital
Private Limited can lose only the money they put into and ivest in the bussiness/company; Limited Liabilty.
[edit] External links
ar:شركة محدودةde:Aktiengesellschaft (Vereinigtes Königreich) it:Società a responsabilità limitata pl:spółka kapitałowa pt:Sociedade limitada sr:Друштво са ограниченом одговорношћу th:บริษัท zh:有限公司
