Industry Companies Life

Limited by shares

A private company limited by shares, usually called a private limited company (Ltd.) (though this can theoretically also refer to a private company limited by guarantee), is a type of company incorporated under the laws of England and Wales, Scotland, that of certain Commonwealth countries and the Republic of Ireland. It has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company (plc). "Limited by shares" means that the company has shareholders, and that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company. A shareholder's personal assets are thereby protected in the event of the company's insolvency, but money invested in the company will be lost. A limited company may be "private" or "public". A private limited company's disclosure requirements are lighter, but for this reason its shares may not be offered to the general public (and therefore cannot be traded on a public stock exchange). This is the major distinguishing feature between a private limited company and a public limited company. Most companies, particularly small companies, are private. Private companies limited by shares are usually required to have the suffix "Limited" (often written "Ltd" or "Ltd.") or "Incorporated" ("Inc.") as part of their name, though the latter cannot be used in the UK or the Republic of Ireland; companies set up by Act of Parliament may not have Limited in their name. In the Republic of Ireland "Teoranta" ("Teo.") may be used instead, largely by Gaeltacht companies. "Cyfyngedig" ("Cyf.") may be used by Welsh companies in a similar fashion.

A shareholder or stockholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation.[1] Stockholders are granted special privileges depending on the class of stock. These rights may include: The right to sell their shares, The right to vote on the directors nominated by the board, The right to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions, The right to dividends if they are declared, The right to purchase new shares issued by the company, and The right to what assets remain after a liquidation. Stockholders or shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity. For example, labor, suppliers, customers, the community, etc., are typically considered stakeholders because they contribute value and/or are impacted by the corporation. Shareholders in the primary market who buy IPOs provide capital to corporations; however, the vast majority of shareholders are in the secondary market and provide no capital directly to the corporation. In the United Kingdom, every company must have formally appointed company officers at all times. By statute, a private company must have at least one Director and until April 2008 also had to have a Secretary (see Companies Act 2006). The company's articles of association may require more than one director in any case, and frequently do. At least one director must be an individual, not another company. Anybody can be a director, subject to certain exceptions. A person who is an undischarged bankrupt or who has been banned from being a company director by the court will also be restricted. Nor can a person be a director of a limited company if he or she is unable to consent to their appointment. As of October 2008, all directors must be at least 16 years old. This change was applied retrospectively, with any directors under the age of 16 being removed from the register (Companies Act 2006). This was already the case in Scotland, under the Age of Legal Capacity (Scotland) Act 1991. No formal qualifications are required to be a company secretary. Certain non-British nationals are restricted as to what work they may carry out in the UK. As of October 2008 (Companies Act 2006), it is no longer necessary to obtain a court order to withhold a director's address, as a Service Address can be supplied as well with the residential address being held as protected information at Companies House.

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