Ltd Company FSs Flashcards
1
Q
Define a Public Ltd Company
A
A company may become a plc if it has
- Issued Share Capital of over £50,000
- At least 2 members (shareholders) and 2 directors
A plc may raise capital from the public on the Stock Exchange or similar markets, but not all do so
2
Q
Define a private ltd company
A
A private ltd company is defined by the Companies Act 2006 as ‘any company that is not a public company’
A private company has
- No minimum requirement for issued share capital
- At lease 1 member (shareholder) and at lease 1 director who may be the sole shareholder
The shares of a private ltd company are not traded publicly on the Stock Exchange or similar markets but are transferable between individuals
