Private and Public Companies

Question 1

What types of private companies are there?

Answer 1

1) Limited by shares
2) Limited by guarantee
3) Unlimited company

Question 2

What are private companies limited by guarantee?

Answer 2

1) No share capital
2) Liability of members limited to amount they agree to contribute

Question 3

What are unlimited companies?

Answer 3

Liability of members is unlimited

Question 4

What are public companies?

Answer 4

Those that can offer shares to public

Question 5

What are listed companies?

Answer 5

A public company listed in London Stock Exchange

Question 6

What is the main difference between private and public companies in how resolutions are passed?

Answer 6

Private can pass written resolutions, public cannot

Question 7

For private and public, is annual GM needed?

Answer 7

Only for public

Question 8

For private and public, what is minimum number of directors?

Answer 8

1 for private, 2 for public

Question 9

For private and public, is company secretary required?

Answer 9

Only for public

Question 10

For private and public, what is minimum share capital to be issued?

Answer 10

At least one share for private, minimum of £50,000 for public

Question 11

For private and public, what certificate is required before commencement of trading?

Answer 11

Private - certificate of incorporation
Public - certificate of incorporation and trading certificate