Private, Public and Listed Companies

Question 1

Private Company:

Must end with limited / ltd.

Answer 1

s59(1)

Question 2

Private Company:

Minimum number of shareholders

Answer 2

1 - ss.7(1) and 8(1)

Question 3

Private Company:

Number of directors

Answer 3

1 - s.154(1)

Question 4

Private Company:

Company Secretary required?

Answer 4

No - s.270(1)

Question 5

Private Company:

Certificates required before commencement of trading?

Answer 5

a) Certificate of Incorporation - s.15(4)

b) Can commence business as soon as its incorporated

Question 6

Private Company:

Minimum share capital to be issued?

Answer 6

Must have at least one share - s.8(1)(b)

Question 7

Private Company:

Is it allowed to offer shares to the public?

Answer 7

No - s.755(1)

Question 8

Private Company:

a) Method of payment?
b) Minimum amount payable for share capital

Answer 8

a) No restriction of method of payment - s582(1)(2)

b) Shares can be issued without immediate payment

Question 9

Public Company:

Must end with public limited company / p.l.c.

Answer 9

s58(1)

Question 10

Public Company:

Minimum number of shareholders

Answer 10

1 - ss.7(1) and 8(1)

Question 11

Public Company:

Number of directors

Answer 11

2 - s.154(2)

Question 12

Public Company:

Company Secretary required?

Answer 12

Yes - s.271

Question 13

Public Company:

Certificates required before commencement of trading?

Answer 13

a) Certificate of Incorporation - s.15(4)
b) Can commence business once trading certificate issued by Registrar showing company’s allotted share capital is not less than the minimum - s.761(1)(2)

Question 14

Public Company:

Minimum share capital to be issued?

Answer 14

£50,000 / Prescribed Euro amount - s.763(1)(a)(b)

Question 15

Public Company:

Is it allowed to offer shares to the public?

Answer 15

Yes (but FSMA imposes other restrictions)

Question 16

Public Company:

a) Method of payment?
b) Minimum amount payable for share capital

Answer 16

a) In cash only / where consideration has been independently valued - s.593(1)
b) 25% of nominal value plus the whole of any premium

Question 17

What is a private limited company?

Answer 17

Any company that isn’t a private company - s4(1) CA 2006

Question 18

What is a public limited company?

Answer 18

A company … whose certificate of incorporation states that it’s a public company - s4(2) CA 2006

Question 19

What is a listed company?

Answer 19

When a private company converts to a public limited company in order to raise greater funds by offering shares

They then apply to have the shares listed on the London Stock Exchange

Question 20

Is a public/private company required to have an AGM?

Answer 20

Public = yes - s336 CA 2006
Private = no

Question 21

At least one director must be a natural person

Answer 21

s155 CA 2006

Question 22

To be a director, there’s a minimum age limit of 16

Answer 22

s157 CA 2006