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Private Limited Companies

Private Limited Companies. Same as PLC’s?. Private Limited Companies are similar to Public Limited Companies as they both have: Shareholders (owners) Board of Directors (managers) Pays corporation tax on its profits Raise capital through the sale of shares.

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Private Limited Companies

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  1. Private Limited Companies

  2. Same as PLC’s? • Private Limited Companies are similar to Public Limited Companies as they both have: • Shareholders (owners) • Board of Directors (managers) • Pays corporation tax on its profits • Raise capital through the sale of shares. • Limited Liability for shareholders • Have to have an Annual General Meeting (AGM). • Have to produce financial reports (accounts) each year and make public. • Have to complete Articles of Association and Memorandum of Association.

  3. Differences with LTD’s • Shares can only be sold privately, not on the stock exchange. • Makes raising money difficult. • Must have agreement of all other shareholders. • Main shareholders tend to work for the business (BODs). Therefore direct control of business. • Can have 1 shareholder if wish (under EU law) • Most LTD’s remain small and are family businesses. • No minimum limited as to how many shares have to be initially sold before can be a LTD. • Actual business decisions can remain private between shareholders.

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