A Question About "Private Limited Companies"???

Question

I am aware that public limited companies are those that issue shares and thus have a board of directors. However, are private limited companies also required to have a board of directors and do private limiited companies also issue shares???

Answer 1

they have shares but they are not on the open market

shares of private limited companies (LTDs) tend to be family members or close friends... it is defined as a company with less that 20 shareholders and all shareholders have to agree before any shares can be sold

Answer 2

http://www.businessbureau-uk.co.uk/new_b...

Answer 3

There are four main types of company:

Private company limited by shares - this is the most common type of company. The important difference from a public limited company is that a private company may not offer its shares for sale to the general public.

Private company limited by guarantee - members of this type of company do not make any contribution to the capital during its lifetime as they do not purchase shares.  The members' liability is limited to the amount that they each agree to contribute to the company's assets if it is wound up.

Private unlimited company - this type of company may or may not have a share capital and there is no limit to the members' liability. Because there is no limitation on members’ liability, far less of the company’s affairs have to be disclosed publicly than is the case with the other types of company.

Public limited company - this type of company has a share capital and, the liability of each member is limited to the amount unpaid on shares that a member holds. The important difference from a private is that a public limited company may offer its shares for sale to the general public. It may also be quoted on the stock exchange.

A “private company” may be any of the first three on this list. Companies limited by guarantee and unlimited companies are private companies even if the word ”private” is not used*.

*There are still a few “companies limited by guarantee with a share capital”. It has not been possible to form these since 1981.

A limited company with a share capital will be classed as a public company if:

it has been registered or re-registered as a public company on or after 22nd December 1980;

its memorandum states that it is a public company;

its name ends with 'Public Limited Company' or 'PLC' (or, if it is a Welsh company, – that is, a company the memorandum of which says that its registered office must be in Wales –  it may use the Welsh equivalents, namely 'Cwmni Cyfyngedig Cyhoeddus' or 'CCC') ; and

It has an authorised share capital of at least £50,000 or at least €65,600 and states this in its memorandum.