Limited companies

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Data:	04.04.2001
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Limited Companies
Limited companies, also called joint-stat companies, it allow people to invest in a business without having to face the risk of unlimited liability. The company has a separate legal identity that it can enter a legal contract and sue or be sued in its own name and own property.
The capital invested is divided in shares of equal value. The capital is provided by the shareholders, who are only responsible for the capital invested. The profits are divided between the shareholders and they are called dividends.
The shareholders elect a number of director, the board of directors.
In the U.S.A. limited companies are called corporations. In the Great Britain there are two types of limited company: public limited companies(PLC) and limited companies(Ltd) also called private limited companies. The most important difference between the two forms is that the shares of PLC are quoted an the stock exchange. The shares can be sold to the public.
The company must indicate their status in their name for warm people that their liability is limited.

Private Limited Companies (Ltd)

Private companies must have at last two people, but there is no limited to the number of shareholders. Companies can expand by selling more shares but they are not sold an the stock exchange and then new shareholders must be found privately. Compared with a PLC the ordinary limited companies have a difficulties to raise large amounts of capital by offering shares to the public.

Public Limited Companies (PLC)
Only two people can needed to form public companies, but there is no limited to the numbers of shareholders. Their shares are quoted on the stock exchange and then they can became larger than other types of organization.