Type of Companies and Legal Implications | Report

Task 3
Type of companies and legal implications
There are 8 types of companies in the United Kingdom. The distinction has
various aspects of the legal status of the companies. This touches on the
ownership and liquidation state. Some of the common types of companies in the
UK entail the following lists;
Public limited company
- This is cooperation where ownership is open to the public through share s
and stocks. Individual financial ability is restricted on a fixed sum through
a level of investment.
Private company limited by shares
- A private company cannot be owned by members of the public. It is owned
by a nongovernmental organization or a smaller number of shareholders
and sale of shares is handled privately. The individual is responsible for
financial liabilities based on their investment.
A company limited by guarantee
- Individuals owning this type are not responsible for fixed based
investment sum; the company status is reserved for those who don’t have
shareholders. Instead, they have a group of members acting as
guarantees and engage in the group contributed as a nominal sum in case
of winding up.
Unlimited company
- The key difference of unlimited and limited is there it lacks formal
restrictions on the amount of money the shareholders have to part with
when the company goes into liquidation. In formal liquidation,
shareholders are responsible for settling outstanding financial liabilities.
Limited liability partnership
- Limited liability partnerships are not legal in the UK, but rather they are
incorporated as bodies that are similar to other types of companies. The
partners in this model are directly managing the businesses.