Topic 11: Company Law: Public & Private Companies, LLP & Limited partnerships

Question 1

What is a limited liability partnership?

Answer 1

Partners involved in a business that have limited liability to the amount they have invested. There must be one unlimited liability partner though.

This format of partnership is not commonly used and only for mainly private equity.

Question 2

Whats the different types of limited companies? and what are the implication of formaing as a public or private ltd company

Answer 2

Public companies - PLC, offers its shares and debentures for sale to public and MAY BE listed on a stock exchange. Typically only large companies.

Private company - LTD, prohibited from offering shares to public. Most private companies are Limited liability but some can be unlimited.

Question 3

What are the rules about what business names can be used or not be used?

Answer 3

• Cannot have same name as existing
• Can have similiar name but may be ordered to change its name either within first 12 months or tort of passing off after 12 months.
• Prohibited names which may be offensive or criminal offence. E.g. Queen, Royal, National, Bank, Government.

Question 4

What are the requirements for registering a private limited company?

Answer 4

• Company name & address
• One director
• One shareholder (can be same person)
• Memorandum of association
• Details of companies shares
• Articles of association

Question 5

What must be on a public and private companies name?

Answer 5

• Public companies must use PLC or public limited company.

- Private limited company must end with LTD or limited.