A Limited Company is an artificial legal individual? P, Atrill, & adenine; E,Mclaney, Accounting and Finance for Non- specialists, Third Edition, p85. (VERY GOOD rule book FOR THIS issuance!!!)In other words a corporation has as many an(prenominal) rights and responsibilities that a genuine person would have, apart from i expulsion this being those created by the Registrar Of Companies. There atomic number 18 ii types of phoner at that place is the private company and the public company. A Public Company (PLC) is defined as ? one whosememorandum submits that the company is a public company, and has registered as overmuch(prenominal)? F, Wood, Business Accounting, fifth Edition, P355. It mustiness have a negligible of two members, and on that point is no touch on tohow many can join, and the company must have an authorised capital,which is ordinarily at least £50,000. A Private Company (Ltd) whitethorn beformed by two or more people, a family or a small convocat ion ofsh atomic number 18holders could own it, where the shares of ownership are not soldto the public. Shares basically limit the company, and this is wherethe liability of the members for the debts of the company is limitedto how much they invest into it. The creditors can accusal no furthercontribution from the shareholders to meet their claims against thebusiness, and that there liability is limited by guarantee. Limited Companies are take to have their books and annual finalaccounts audited by an independent qualified accountant. The annualreport contains a profit and evil account, a balance sheet, and muchother information. The auditor?s job is to make certain ? The balancesheet shall check a authorized and fair facet of the state of affairs of thecompany as at the end of its financial twelvemonth; and the profit and lossaccount shall a give true and fair view of the profit or loss of thecompany for the financial year? (Companies Act... If you take to get a bountiful essay! , order it on our website: OrderCustomPaper.com
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