Business, Legal & Accounting Glossary
A business structure used in Europe and Canada, in which shareholder responsibility for company debt is limited to the amount he/she has invested in the company. Abbreviated Ltd or plc.
A limited company is a registered company in which the members have only limited liability for debts incurred by the company. Although it is possible for a registered company to be of unlimited liability this is relatively unusual. In most companies, the primary purpose of registration is to achieve limited liability status. This limitation of liability has a price, of course, in the form of taxation.
There are, in theory, two ways in which the limited liability is signified: limitation by shares, and limitation by guarantee. The latter is now mostly defunct.
A limited company in the United Kingdom is a corporation whose liability is limited by law. There are three main types of limited companies which are set up by the Memorandum of Association & Articles of Association:
Similar to Pty. Ltd.
This type of company does not have share capital but is guaranteed by its “members”, who agree to pay a fixed amount in the event of the company’s liquidation. Frequently charities incorporate using this form of limited liability. Another interesting example is the Financial Services Authority.
Public limited companies can be publicly traded on a stock exchange (similar to the U.S. Corporation and the German AG).
A shareholder in a limited company, in the event of its becoming insolvent (equivalent to bankruptcy in the US), would be liable to contribute the amount remaining unpaid on the shares (usually zero, as most shares are issued fully paid). ‘Paid’ here relates to the amount paid to the company for the shares on the first issue, and not to be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability.
A limited company can be registered in England and Wales, Scotland, Northern Ireland, or Australia. The registration of companies in Great Britain (England, Scotland, and Wales) is done through Companies House. The registration of companies in Northern Ireland is done through the Department of Enterprise, Trade, and Investment.
They were a limited company and I think that they needed to make some changes and change who they were.
You may find it is best to structure yourself as a limited company if you think that would be the best way.
My boss asked me to fly to England and establish a subsidiary for us which he instructed should be structured as a limited company so that we would have no extraneous liability.
Limited Liability Company
Sdn berhad
berhad
Bolsa Mexicana De Valores
Table A
Khazanah Nasional
Aktiengesellschaft
memorandum and articles of association
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This glossary post was last updated: 5th November, 2021 | 0 Views.