D: Company Administration Flashcards
What is a sole trader? – Liability – legal formality – size – type of tax
The owner is the business – unlimited liability – no legal formalities – small businesses – income tax
What is a partnership? – Liability – legal formality – size – type of tax
Any formal or formal agreement between two or more people to carry on business – unlimited liability – formal/informal private agreement – small to medium – income tax
What is a limited liability partnership? – Liability – legal formality – size – type of tax
Limited liability – formal registration with LLP in name – small to medium – corporation tax – perpetual succession i.e. contracts in own name
What is a company? – Liability – legal formality – size – type of tax
An artificial legal person created by registration with a written constitution
– limited liability
– formal registration with plc or LTDN name
– large businesses
– corporation tax
– perpetual succession i.e. contracts in own name
What are the two types of companies limited by shares?
Public company as a private company
How old public and private company is different in: – definition – name – capital – raising capital – start of trading – directors -secretary – accounts – audit – AGM
– Registered as public first registered as Private
– plc versus LTD end
– at least 50,000 in shares there is no minimum
– raise capital through advertising shares on the stock exchange versus private offering
– obtain trading certificate versus begin from date of court in corporation
– minimum of two directors there is minimum of one
– must have a qualified secretary verse no need for secretary
– must file accounts within six months vs no need before general meeting but with the nine months
–Must be audited verse audit over 6,500,000
– AGM every year there is no need for AGM
What documentation is needed for company formation?
– Propose name of company – memorandum of association/article of Association – type of company excellent – details of registered office – share capital – proposed directors and their consent to act – names of the first shoulders – registration fee
Constitution binds members with company
what are off-the-shelf company?
Buying a ready-made company that is ready to trade from purchase
– cheap and simpler
– can trade immediately
– can enter contracts immediately
What is the article of Association/memorandum of association?
Sets out how the company is governed
Regulates relationship between company and shareholders and directors
What rules do the articles contain?
That appointment and dismissal directors – powers responsibilities and liabilities of directors – directors meetings – members of works – members meetings – payment have been dividends – communication with the shares – documents and records
