Limited Company
In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. In a company limited by shares, the liability of members is limited to the unpaid value of shares.[1] In a company limited by guarantee, the liability of owners is limited to such amount as the owners may undertake to contribute to the assets of the company, in the event of being wound up.
Contents
Types
Public Limited Company
A public limited company can be publicly traded on a stock exchange; this is similar to the U.S. Corporation (Corp.) and the German Aktiengesellschaft (AG).
Has shareholders with limited liability and its shares may not be offered to the general public. Shareholders of private companies limited by shares are always bound to offer the shares to their fellow shareholders prior to selling them to a third party.
Private Company Limited By Guarantee
This is a company that does not have a share capital but is guaranteed by its members, who agree to pay a fixed amount in the event of the company's liquidation. Charitable organizations are often incorporated using this form of limited liability.[2] Another example is the Financial Conduct Authority. In Australia, only an unlisted public company can be limited by a guarantee.
Canada
In Canada, a person wishing to register a limited company must file Articles of Incorporation with either their provincial government or the federal government.[3] At the time of incorporation, a company must elect to use "Limited" (Ltd.), "Incorporated" (Inc.) or "Corporation" (Corp.) as part of their name.
