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Chapter 7

Private company v public company

Public companies Private (limited) companies

Definition Must be registered as a public Any company that is not a public
company under CA06. company.

Name Ends with ‘plc’ or ‘public limited Ends with ‘Ltd.’ or ’limited’ (or
company’. same in Welsh) but some
companies (including charities)
may be exempt from this.

Capital Must not be less than the No minimum requirements.
authorised minimum (currently
£50,000) and, in order to trade,
must have allotted shares of at
least that amount.

Raising May raise capital by advertising Prohibited from offering its shares
capital its securities (shares and to the public.
debentures) as available for
public subscription and can be
listed on the Stock Exchange or
similar institution.

Start of Must obtain trading certificate Can begin from date of
trading from Registrar before commence incorporation.
trading.

Directors Minimum of two. Minimum of one.

Secretary Required; must be qualified. Optional: need not be qualified.

Accounts Must file accounts within 6 Need not lay accounts before
months. general meeting. Must file within
9 months.

AGM Must be held each year. Need not hold an AGM.

Resolutions Cannot pass written resolutions. Can pass written resolutions
instead of calling meetings.

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