Limited Companies

Commerce SSS2 First Term

WEEK 7

Limited Companies

Performance Objectives

The student should be able to:

     1. Explain the meaning of limited companies.

     2. Compare the private limited and public limited companies.

     3. Describe the requirements for the formation of limited companies.

Content

Meaning of Limited Company

 A limited company is a kind of business unit which a number of people agree to form by each contributing shares towards its initial capital under the conditions laid down in the various Companies Acts.

Types of Limited Liability Companies

1. Private limited liability company: Private limited liability company is defined as one which by its articles restricts the right to transfer its shares, limits the number of its shareholders…