Term 2 - Summaries (Private company & Personal Liab CO) Flashcards
1
Q
Characteristics of a PRIVATE COMPANY
A
- NAME = Pty Ltd
- No of owners = 1+
- Legal personality
- LIABILITY = Limited
- NOT ALLOWED = to ask the public for money
- CONTINUITY
- Company Tax = 29%
2
Q
ADVANTAGES of a PTY LTD (Private Company)
A
+ LIABILITY = Limited
+ AGM (Annual General Meeting) = NONE
+ Continuity
+ LIMITED CAPITAL (FUNDS) = Perfect option
3
Q
& DISADVANTAGES of a PTY LTD (Private Company)
A
- NOT ALLOWED = To borrow money from public (therefore it has limited capital)
4
Q
Characteristics of a PERSONAL LIABILITY CO
A
- MIX between PARTNERSHIP & PRIVATE
COMPANY - REGISTRATION DOCUMENT = Memorandum of
incorporation - LIABILITY = Jointly and severally liable
- Must set-out the name and objectives
- OWNERS = Members (NO MAXIMUM)
- NAME = Inc
5
Q
ADVANTAGES of a PERSONAL LIABILTY CO (INC)
A
+ NO maximum number of owners
+ LOTS of capital available (because they can have MANY owners)
6
Q
DISADVANTAGES of a PERSONAL LIABILITY CO (INC)
A
- LIABILITY = Owners are liable for debts
