Introduction - Private and Public Companies

Question 1

Types of private companies

Answer 1

• Private companies limited by shares
• Private companies limited by guarantee
• Unlimited companies

Question 2

What are the 3 stages of company development leading to listing?

Answer 2

1. ABC Limited(private)
2. ABC Plc (unlisted public company)
3. ABC Plc (listed company on stock exchange)

Question 3

Why might shareholders of a growing private company seek to convert to a public company?

Answer 3

To access wider funding options by offering equity and debt securities to public investors and potentially apply for a stock exchange listing.

Question 4

Can private companies use written resolutions?

Answer 4

Yes, private companies can pass shareholder resolutions via written resolution

Question 5

What is minimum number of directors ?

Answer 5

Private - 1
Public - 2

Question 6

Is a company secretary required?

Answer 6

Private - no
Public - yes

Question 7

What is the minimum share capital required?

Answer 7

Private - just 1 share, could be 1p
Public - £50k or prescribed euro amout

Question 8

What certificates are needed before trading?

Answer 8

• Private - Certificate of Incorporation - can start trading immediately
• Public - needs both Certificate of Incorporation and Trading Certificate