Week 11 - Limited vs Unlimited Companies Flashcards
Which companies are more rare?
Unlimited companies are more rare, likely because they get quite big and you are risking a lot more
What is an advantage of unlimited companies?
You can have perpetual succession
What are unlimited companies not?
They are not usually trading companies - more likely used for land investments
If you have a company limited by shares, it is also possible to…
Limit by guarantee
Where a company is limited by shares, what is the liability of its shareholders limited to?
Any amount unpaid on their shares
What/who does a private limited company have to have?
At least one director, and at least one shareholder, who could be the same person
How many shareholders are in a company limited by guarantee?
None
In a company limited by guarantee, what do members do?
Members give a guarantee to contribute towards the assets of the company in the event of its being wound up insolvent.
In a company limited by guarantee, what is the guarantee members usually contribute?
The guarantee is usually nominal, frequently just £1
What do most companies limited by guarantee include?
A non-profit distribution clause
How does voting work in a company limited by guarantee?
Usually a one vote one member system - equal voice
