SGS 1: Business Media

Question 1

Minimum number of shareholders - private and public company

Answer 1

1 (ss 7(1) and 8(1))

Question 2

Minimum number of directors:

Answer 2

Ltd: 1
Plc: 2

Question 3

Company secretary required?

Answer 3

Ltd: yes
Plc: No

Question 4

Certificates required before commencement of trading?

Answer 4

Ltd: Certificate of incorporation; can commence business as soon as it is incorporated
Plc: certificate of incorporation; cannot commence business until a trading certificate is issued by Registrar showing that the company’s allotted share capital is not less than the minimum

Question 5

Minimum share capital to be issued

Answer 5

Ltd: 1 share
Plc: min of 50,000 pounds

Question 6

Method of payment and minimum amount payable for share capital

Answer 6

Ltd: no restriction on method of payment; shares can be issued without immediate payment
Plc: payments in cash only or where consideration has been independently valued; 25% of nominal value must be paid on allotment plus the whole of any premium (s586(1))

Question 7

What can PLCs not do that Limited Companies can?

Answer 7

• Use written resolution procedure
• provide financial assistance for the purchase of their own shares
• purchase their own shares out of capital

Question 8

In what two ways do shareholders control the company?

Answer 8

• Voting

- Determining the constitution

Question 9

How do shareholders make money?

Answer 9

• Dividends

- Capital gains