Page 19 - LILITED LIABILITY COMPANIES - INTERMEDIATE

COMPANY ACCOUNTING SESSION 14

1.16 KEY POINTS TO REMEMBER

1. A company is a separate legal entity.
2. The liability of members is limited to the amount they have paid, or have agreed to pay, on their shares.
3. A company can raise more capital than a sole trader.
4. Public companies may issue shares to the general public; private companies must include a restriction
on the issue of shares in their Articles of Association.
5. The differences between limited companies and sole traders.
6. The differences between ordinary shares and debentures.
7. The definitions of capital reserves and revenue reserves.
8. All reserves form part of the ordinary shareholders' interest in the company.

©LAWRENCE CAUCHI AIPFM, LMLCC, FIAB, MAAT, MIAAP. Page 18 of 19