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Private Limited Company - Advantages and Disadvantages
- Words:
- 459
- Submitted:
- Sun Dec 15 2002
Have a little read: ... Definition A private limited company (LTD) is a business that is unable to float its shares on the stock exchange, however it may issue its shares to friends, family and employees. This type of company can be registered by having a LTD at the end of their chosen name. Basis Unlike the sole trader and partnership business previously mentioned, the legal position of the company is completely unaffected by the death or retirement of one of its shareholders. Shareholders enjoy the privilege of limited liability, which means they are only liable to meet the debts of the company only to the extent that thy have invested into the business. The shareholders elect directors at the companies AGM (Annual General Meeting), who controls the company. Policies are decided by the board of directors, and are carried out by delegation. Shares must be owned by friends, families and employees of the company and are
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