What Is The Legal Implication Of The Word Limited At The End Of The Name Of A Company?

[Franzen]

What Is The Legal Implication Of The Word Limited At The End Of The Name Of A Company?

[Iver]

A limited company in the United Kingdom is a corporation whose liability is limited by law. There are three main types of limited companies which are set up by the Memorandum of Association & Articles of Association:

private company limited by shares(Ltd.) Similar to Pty. Ltd. private company limited by guarantee This type of company does not have share capital but is guaranteed by its "members", who agree to pay a fixed amount in the event of the company's liquidation. Frequently charities incorporate using this form of limited liability. Another interesting example is the Financial Services Authority. public limited company(PLC). Public limited companies can be publicly traded on a stock exchange(similar to the U.S. Corporation and the German AG). As a shareholder in a limited company, if it were to become insolvent(equivalent to bankruptcy in the US) you would only be liable to contribute the amount remaining unpaid on the shares(usually zero, as most shares are