Constitutional differences between public and private companies Flashcards
What does a private company must have in its name?
Must end with Limited or
Ltd - s59(1)
What does a public company must have in its name?
Must end with Public
Limited Company or Plc -
s58(1)
What is the minimum no of shareholders in a private company?
1 - s7
What is the minimum no of shareholders in a public company?
1 - s7
Is a company secretary required in a private company?
No - s270(1)
Is a company secretary required in a public company?
Yes - s270
What is required before
a commencement of trading can take place for a private company?
Certificate of incorporation -
s15
What is required before
a commencement of trading can take place for a public company?
Certificate of incorporation - s15 \+ A trading certificate is issued by Registrar showing that the allotted share capital is not less than the minimum - s761
What is the minimum share capital to be issued in a private company before it starts trading?
Must have at least 1 share.
What is the minimum share capital to be issued in a public company before it starts trading?
Minimum of £50,000 (or
prescribed Euro equivalent) -
s763
Can a private company offer shares to the public?
Prohibited - s755(1)
Can a public company offer shares to the public?
Permitted under CA 2006,
but note that FSMA 2000
imposes significant
additional restrictions
What is the minimum amount that must be paid up on share capital of a private company?
No restrictions - shares can
be issued without immediate
payment.
What is the minimum amount that must be paid up on share capital of a public company?
25% of the nominal value
plus the whole of any
premium - s586(1)
Note that only payments in cash are permitted, except where the consideration provided has been independently valued - s593 (1)
What is share capital?
Share capital are funds raised from issuing of shares.
What is a trading certificate?
A trading certificate is issued by Registrar showing
that the allotted share capital is not less than the minimum.
