Which TWO of the following apply to shares of companies whose names end in ‘Ltd’?
(1) They may not be issued to non-members
(2) They may not be offered to the public
(3) They may not be transferred
(4) They may not be traded on the stock exchange
A (1) and (2)
B (2) and (3)
C (1) and (4)
D (2) and (4)
Which of the following must a private company ALWAYS have?
A Shares
B Limited liability
C A company secretary
D A registration certificate
(b) In relation to registered companies, explain and distinguish between:
(i) unlimited companies;
(ii) companies limited by guarantee;
(iii) companies limited by shares.
Explain the meaning and consequences of the following terms when found at the end of the names organisations:
(a) LLP;
(b) Ltd;
(c) plc.
In 2008 Ger was disqualified from acting as a company director for a period of 10 years under the Company Directors Disqualification Act 1986 for engaging in fraudulent trading.
However, he decided to continue to pursue his fraudulent business and, in order to avoid the consequences of the disqualification order, he arranged for his sons, Ham and Ive, to register a new company, Just Ltd, with them as the only shareholders and directors of the company. As neither Ham nor Ive have any business experience Ger arranged for his accountant Kim to run the business on his instructions. Although Kim took no shares in the company, and was never officially appointed as a director, he nonetheless assumed the title of managing director.
Lyn, a customer of Just Ltd, suffered considerable loss on account of its fraudulent activity.
Required:
Advise Lyn as to:
(a) the status of Ham, Ive, Ger and Kim as directors in Just Ltd; and
(b) the potential liability of Ham, Ive, Ger and Kim under company legislation.