Company Types - info Flashcards
(14 cards)
Who owns a company and who runs it?
Shareholders own it; directors run it.
What is a director’s liability for company debts?
Directors have no personal liability unless they commit fraud or misconduct.
What limits a shareholder’s liability?
Their liability is limited to any unpaid amount on their shares.
What powers do shareholders have?
Appoint/remove directors, approve loans, amend articles, change name.
How many directors are required?
Private: 1; Public: 2; must include at least one natural person.
What can cause director disqualification?
Fraud, wrongful trading, persistent filing failures.
What must be included in a company name?
“Limited” or “plc” (or Welsh equivalents).
When can a company be ordered to change its name?
If it’s too similar to another, misleading, or based on false registration info.
What must companies display on documents and premises?
Their registered name on letters, websites, premises, and official documents.
What is an LLP?
An incorporated business where members have limited liability and are taxed as self-employed.
Who can form an LLP?
Two or more people carrying on a lawful business for profit.
Are LLP members personally liable?
No, liability is limited to their investment.
What governs LLP members’ rights and duties?
The LLP agreement (if present) or default rules under the LLP Act 2000.
What’s the default management structure in an LLP?
All members share equally in profits, take part in management, and can’t be paid or expelled without agreement.
