1. Types of companies:
Limited and unlimited companies, company limited by share and a company limited by guarentees, public companies, private companies.
2. Essential differences between limited and unlimited companies?
An unlimited company has the advantage of being a legal entity separate from its members, but lacks the advantage that most people seek from incorporation, that is the limited liability of the members.
Thus, the members of an unlimited company will be held responsible for all of the debts of the company without limit. Unlimited companies therefore form only a small proportion of the number of registered companies.
Limited liability means that the liability of corporate members for corporate depth is limited to the amount of money invested by corporate members into a company.
3.Brief characteristic of a public company.
Where a company is registered as a public company, this must be strarted in the memorandum and the words «public limted companies» must come at the end of its name. Public companies may invite the public to subscribe for shares. Public companies are therefore more suitable for inviting investment by large numbers of people.
4.Brief characteristic of a private company.
Section 81 Companies Act 1985 prohibits a private company from issuing or causing to be issued, any advertisment offering securities to be issued by the company. A private company is particularly suitable for running a business in which a small number of people are involved.
5.Main restrictions on the name of a company.
The choice of a name for a company is of considerable importance and subject to a number of restrictions. If it is to have limited liability the name must end with “Limited” (“Ltd”) for a private company and “Public Limited Company” (“PLC” or “plc” for a public companies. The company may not be registered with the name which is the same as a name appearing on the index. A company may not be registered with a name which,in the opinion of the...