LIMITED COMPANIES
CONTENT
- Meaning of Limited Companies
- Types of Limited Liability Companies
- Formation of a Limited Liability Company
Meaning of Limited Companies
A limited liability company is a business owned by a number of people, operated by a legal person on behalf of its owners, with the usual motive of profit and with the provision that the owners are liable to the company only to the value of the share capital they individually hold.
It is also referred to as a joint stock company and can be defined as an incorporated business organisation established for profit making.
EVALUATION
- Define a public liability company
Types of Limited Liability Companies
There are two types of limited liability companies, namely: private limited liability companies and public limited liability companies:
1. Private Limited Liability Company
A private limited liability company has the following features or characteristics
(i) It restricts the right to transfer its shares
(ii) It limits the number of its members from two to fifty (2-50) persons
(iv) It does not subscribe shares to the public
(v) The name of the company must end with “Limited”.
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