Company law terminology

Sparks

Guys,
Can someone tell me whether a company limited by guarantee and incorporated under the 1963 Act is referred to as a limited company, a public limited company, or a private limited company?

bergin

Hope this helps, big firms like MOPS etc have interesting articles on Company Law to help with most questions.

The liability of the members of a guarantee company is limited to the guarantee amount, usually a nominal sum. The guarantee company’s constitutional documents are its Memorandum and Articles of Association. It consists of members who normally elect a board of directors to conduct the affairs of the company and to whom the executives will report. It is possible to have either a public or private guarantee company. There are two key differences between public and private guarantee companies. Firstly, a public company limited by guarantee must have a minimum of 7 members with no upper limit on the number of members. In contrast, a private company limited by guarantee can have only a single member up to a maximum of 50 members. Secondly, a public company limited by guarantee is prohibited from having a share capital, while a private company limited by guarantee must have a share capital.


A private limited is a company with a share capital, a board of directors and members who hold shares in the company which may be transferred and which may carry particular rights e.g. voting rights. This is the typical basic private company that most people are familiar with. The private company limited by shares may have a maximum of 50 members.

A public limited company is one that offers its shares to the public. It must have a minimum of seven members but, unlike a private company limited by shares, it may extend its membership beyond 50. A PLC may offer its shares directly to the public or sell them through the Stock Exchange and float the company in this way.

A public company may be formed afresh or a private company may be converted to a public company where it wishes to increase its membership and/or raise additional capital. The formation of a PLC is typically a commercially motivated and expansionist move on the part of an organisation.

rrpc

Good one Sparks

Sparks

Thanks bergin, that's what I'd thought. RRPC confused me elsewhere so I thought I'd confirm it

bergin

Sparks wrote:

Thanks bergin, that's what I'd thought. RRPC confused me elsewhere so I thought I'd confirm it

No bother squire!

rrpc

Bergin, I have sent you a PM..