WS1: Introduction to Companies

Question 1

What are the key features of a company?

Answer 1

Separate legal entity

Limited liability - liability of shareholders limited to amount unpaid on shares

Governed by CA 2006

Onerous procedural requirements

Question 2

What are the requirements for a public company limited by shares? [PLC]

Answer 2

Can offer their shares to the public

Minimum of two directors

£50,000 minimum in share capital

Needs a trading certificate in order to trade

Question 3

What are the main differences between a private vs public company?

Answer 3

LTD v PLC

Public: share capital of £50,000

Private 1 director, public needs 2

Private can have a company secretary but doesn’t need to - public must have a qualified company sec

Public must have an AGM