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Corporations and legal personality

Trading certificate – Public Companies only

A plc cannot commence trading until the Registrar has issued a trading certificate.

To obtain a trading certificate, must If it trades before the certificate is
apply to the Registrar stating: issued:

Nominal value of allotted share capital ≤ The company and any officers in default
£50,000. are liable to a fine.

At least ¼ of the nominal value and all of It is a criminal offence to carry on
the premium have been paid up. business, but any contracts are still
binding on the company.

The amount of preliminary expenses and The directors are personally liable if the
who has paid or is to pay them. company defaults within 21 days of due
date.

Any benefits given or to be given to Ground for winding up if not obtained
promoters. within one year: s.122 Insolvency Act
1986.

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