Private Limited Company Flashcards
Who owns the business
Shareholders
Number of owners
Multiple owners minimum of seven
Who controls the business
The board of directors controls the business
Who finances the business
Shareholders
What liability is there
Limited
Who keeps the profit
Shareholders keep the profit or it gets invested back into the business
How is the business established
Register with company’s house and follow all legislation
What happens if the owner dies
The company still exists and whoever is also a shareholder inherits the business
Advantages
Limited liability
Can bring in investors
Continues after the death of the founders
Disadvantages
Have to register
Have to have independently checked
If there are any other investors the original founder is not in full control of the business
What is a memorandum of association
A legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders
What is an article of association
document that contains the purpose of the company as well as the duties and responsibilities of its members defined and recorded clearly
