Business mediums Flashcards
If a company was incorporated before companies act 2006 came into force, is it still governed by 2006 act ?
Yes it applies to all companies although they may have different articles (Table A articles)
What business mediums have a separate legal personality ?
Sole trades - no
General partnerships - no
LLP - yes
Private limited company - yes
PLC - yes
Who is liable in each business and how much ?
Sole trader - unlimited, sole trader Partnership - unlimited, partners
LLP - members, limited to amount agreed
Private Limited company - shareholders limited to unpaid on shares
PLC - shareholders, limited to unpaid on shares
How many owners in each business ?
Soles trader - just trader
Partnerships - 2 partners
LLP - at least 2 designated members
Private Company - at least 1 shareholder
PLC - at least 1 shareholder
How many managers in each business ?
Sole trader - just trader
Partnership - 2 partners
LLP - 2 designated members
Private Companies - 1 director
PLC - 2 directors + secretary
How is decision making done in business ?
Sole trader - trader
Partnership - majority vote of partners
LLP - majority vote of partners
Private Company - majority vote at board meetings some things require shareholders at general meetings
PLC - majority vote at bird meeting, certain decisions reserved for shareholders at general meetings
Who owned the assets in businesses ?
Sole trader - trader
Partnerships - partners
LLP - owned by LLP
Private company - owned by Company
PLC - owned by company
What accounts are audited etc in businesses ?
Sole trader - no accounting required
Partnership - accounts produced but not audited
LLP - yes and audited and published at companies house
Private company - yes and audited and published at companies house
PLC - yes and audited and published at companies house
What security can be granted to each business ?
Sole trader - fixed
Partnership - fixed
LLP - fixed and floating
Private - fixed and floating
PLC - fixed and floating
What duties are imposed on managers by law ?
Sole trader - none
Partnerships - duties under partnership agreement
LLP - duties under members agreement
Private - duties under company’s act
PLC - duties under company’s act
How does termination occur in business ?
Sole trader - at will
Partnerships - partner retiring
LLP - application for registrar for striking off
Private - application to registrar to strike of company
PLC - application to registrar to strike off the company
What are the incorporation formalities in businesses ?
Sole trader - none
Partnership - definition of partnership
LLP - IN01 form, fee,
Private - IN01 form, fee, memorandum of association, articles
PLC - IN01 form, fee, memorandum of association, articles, £50k min share capital
What type of tax is paid for each business ?
Sole trader - income
Partnership - income
LLP - income
Private - corporation tax
PLC - corporation tax
What is contained in company constitution ?
Memorandum, associations, incorporation, statement of capita, resolutions
What does the memorandum of association contain ?
Partners wish to form the company and have agreed to subscribe for the shares
