Limited companies

Transcript:

Hello! Today we speak about limited companies in the UK.

The two main types of limited companies in the UK are private limited companies and public limited companies. They are called limited liability companies because shareholders are legally responsible for the debts of the company only to the amount of the nominal value of their shares, and nothing more.

Private limited companies must end with “limited” or the abbreviation “ltd” after their names and may be registered with a share capital of as little as £1.00. They are called “private” because they cannot offer their shares to the general public on stock markets. Very often their articles of association state that when selling shares of a private limited company, these shares first have to be offered to existing shareholders of the company who have a right of first refusal, and only after the existing shareholders have declined to buy the shares may these shares be sold to third parties.

Public limited companies must end with “plc” and the minimum amount required to open a plc in the UK is £50,000.00. Public limited companies may potentially be listed on stock exchanges, although the vast majority are not, and the general public may then buy their shares through stockbrokers.

As mentioned, private and public limited companies must end respectively with “ltd” or “plc” after the name of the company. Under UK law it is impossible to register a company with “ltd” or “plc” as a part of the name itself because this would cause confusion for those who are doing business with the company.

The word “quota holder”, which is sometimes used in certain European countries, is never once used in UK Companies Act 2006 and the term is uncommon in the UK. Instead the terms “shareholder”, “member” or “holder” of shares are interchangeable for CA 2006 purposes both for public and private companies.

Thank you very much and see you next time for more Peter’s Pills to improve your Legal English!

private limited companies – paragonabile alle società a responsabilità limitata (srl)
public limited companies – paragonabile alle società per azioni (spa)
stock markets – mercati azionari
stock exchanges – borsa valori
articles of association – statuto
right of first refusal – diritto di prelazione
be listed – essere quotato in borsa
stockbrokers – agenti di cambio / agenti di borsa
“shareholder” = “member” = “holder” of shares

See the entire UK Companies Act 2006 here: “Companies Act 2006” (.PDF)

Legal English – Sommario delle Lezioni

• Legal English – Peter’s Pills – Lesson 39 – When is Latin hot, and when is it not?
• Legal English – Peter’s Pills – Lesson 38 – Default
• Legal English – Peter’s Pills – Lesson 37 – Company Agent
• Legal English – Peter’s Pills – Lesson 36 – Injunction (false freind)
• Legal English – Peter’s Pills – Lesson 35 – Mortgage
• Legal English – Peter’s Pills – Lesson 34 – Freehold, Leasehold and Commonhold estates
• Legal English – Peter’s Pills – Lesson 33 – Transferor, Transferee and Transmittee
• Legal English – Peter’s Pills – Lesson 32 – Tax evasion, tax mitigation and tax avoidance
• Legal English – Peter’s Pills – Lesson 31 – Numbers
• Legal English – Peter’s Pills – Lesson 30 – Ordinary resolutions vs special resolutions
• Legal English – Peter’s Pills – Lesson 29 – AGM vs EGM
• Legal English – Peter’s Pills – Lesson 28 – A going concern
• Legal English – Peter’s Pills – Lesson 27 – Collocations: Violate, breach, break, disobey and infringe
• Legal English – Peter’s Pills – Lesson 26 – Company meeting words
• Legal English – Peter’s Pills – Lesson 25 – Mortgagor vs Mortgagee
• Legal English – Peter’s Pills – Lesson 24 – Fixed charges vs Floating charges
• Legal English – Peter’s Pills – Lesson 23 – Doctrine
• Legal English – Peter’s Pills – Lesson 22 – Construe
• Legal English – Peter’s Pills – Lesson 21 – Sign vs Execute
• Legal English – Peter’s Pills – Lesson 20 – The closing statement
• Legal English – Peter’s Pills – Lesson 19 – Writing Business Emails
• Legal English – Peter’s Pills – Lesson 18 – Limited companies
• Legal English – Peter’s Pills – Lesson 17 – Annual Accounts
• Legal English – Peter’s Pills – Lesson 16 – Meetings
• Legal English – Peter’s Pills – Lesson 15 – Attorney-at-law vs Attorney-in-fact
• Legal English – Peter’s Pills – Lesson 14 – Here and there compounds
• Legal English – Peter’s Pills – Lesson 13 – Subject Matter
• Legal English – Peter’s Pills – Lesson 12 – The clear days rule
• Legal English – Peter’s Pills – Lesson 11 – Shareholder, Member or Holder of shares?
• Legal English: Peter’s Pills – Lesson 10 – Competition Law
• Legal English: Peter’s Pills – Lesson 9 – Lasting Power of Attorney
• Legal English: Peter’s Pills – Lesson 8 – Guardianship
• Legal English: Peter’s Pills – Lesson 7 – Damage vs Damages
• Legal English: Peter’s Pills – Lesson 6 – Legal Doublets
• Legal English: Peter’s Pills – Lesson 5 – Escrow
• Legal English: Peter’s Pills – Lesson 4 – Memorandum of Association vs Articles of Association
• Legal English: Peter’s Pills – Lesson 3 – Sign legibly
• Legal English: Peter’s Pills – Lesson 2 – Deed poll
• Legal English: Peter’s Pills – Lesson 1 – Party, counterparty and counterpart

Peter Liebenberg

Peter Liebenberg è uno specialista nella formazione delle persone nella conoscenza della lingua inglese. Ha creato molti corsi nel campo dell’inglese per professionisti, tra cui English for banking, English for business e English for Insurance, ma ha sempre avuto un debole per l’inglese legale. Altri corsi che ha creato comprendono Phrasal Verbs I e II. Quando Peter non fa formazione, corre a Parco Sempione, crea arte nel suo studio sulla Martesana e fa volontariato.