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8 Cards in this Set
- Front
- Back
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Definition |
Does not have to be more than one person (but usually is). Doesn't have to have a commercial purpose (but usually does). |
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Companies not covered by the course |
Chartered Companies (Royal College of Surgeons) Statute Companies (An Post) |
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Private Company Limited by Share |
1. New main type introduced by 2014 act. 2. Single Constitutional Document 3. Private, shares are not open to public 4. Limited Company. Most important advantage of doing business through a company. If company fails, you aren't personally liable for its debts. Separate distinct legal identity from members of the company. ->Limited by the amount you've paid in shares. If you pay 10k for shares, your maximum exposure is 10k. 5. Before getting a loan, often required to provide a personal guarantee. If company doesn't pay you back, I will. |
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Designated Activity Companies (DAC) |
1. Entirely new concept by the 2014 Act. 2. Objects clause sets out the objectives of the company. (Banks/Suppliers would like to know). Until 2014, all companies needed one. 3. Companies acting outside of their clause was ultra vires. Outside the capacity of the body in question, enough to void contracts. 4. Previously objects clauses would be endlessly long and vague so became meaningless. Also unfair to 3rd parties dealing with companies. |
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Public Limited Company (PLC) |
1. Public, so issues shares to the public 2. Minimum 1 member, no maximum. |
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Unlimited Companies |
Dangerous way of doing business. UNLIMITED LIABILITYYYY if it goes into liquidation So why set it up? 1. Privacy. Can keep certain info out of public domain 2. Not actively trading. Simply to hold assets, or for tax avoidance. |
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Company v Partnerships (Advantages of former) |
1. Limited Liability 2. Distinct legal identity. 3. Shares freely transferrable (need consent of other partners) 4. Company managed by directors. 5. Company structure facilitates raising of capital |
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Disadvantages |
1. Fees to set up companies 2. Certain info has to be publicly available 3. Certain professions can only be pursued individually or by way of partership |
