Anglo-AmericanBusinessLawChapter4

Thecompanyform Anglo-AmericanBusinessLawCompanylawFormationCapitalManagementInsolvencyCompanyFormationCapitalManagemLearningObjectives:Tolearnsomeknowledgeaboutlegalpersonalityandtolearnsomeknowledgeaboutthedifferentregulationstodifferenttypesofcompanies.Chapter4Thecompanyform LearningObjectives:Chapter4Topiclist1.Distinctionbetweensoletraders,partnershipsandcompanies2.Limitedliabilityofmembers3.Typesofcompany4.Effectoflegalpersonality5.Ignoringseparatepersonality----liftingtheveilofthecompanyPiercingthecorporateveil

Topiclist1.DistinctionbetwSoletrdderSoletrdderSalomonv.Salomon&CoLtd.

Facts:Mr.Salomonwasaprosperousleathermerchant,whodecidedtoconverthisbusinessintolimitedcompany.HeincorporatedSalomon&CoLimited,withhimself,hiswifeandhisfivechildrenasdirectors.ThecompanypurchasedthebusinessandS&CLtdhadtopayforthebusiness:Salomonv.Salomon&CoLtd.F￡38,782￡20,007sharecapital￡10,000debentures

￡8,782cashsecured--Mr.S

20001—Mr.S6—othershareholdersunsecured--othercreditors￡38,782￡20,007￡10,000￡8,782sThecompanyranintofinancialdifficulties,andthedebentureholdersappointedareceiver.Thereceiversoldoffallofthecompany'sassets,whichweresufficienttopayoffthedebentureholders,butnothingwasleftfortheunsecuredcreditors.ImaginewhetherSwouldbeawardedtheassetsowedbyS&CLtd?Why?SwasseparatefromS&CLtd

(veil)

hewasasecuredcreditor(throughthedebenture)ThecompanyranintofinancialItestablishedthatacompanyisaseparatelegalentityaseparatelegalentitygivesrisetomanyofitscharacteristicsthemostimportantofthemislimitedliabilityforthemembersofthecompanyItwasthedecisionoftheHouseofLordsrelatingtolimitedliabilityforthemembersofcompaniesunderEnglishlaw.ItestablishedthatItwastheWhatiscompany?

(1)DefinitionofcompanyItisalegalentityregisteredundertheCompanyAct1985.keyfeature:ithasalegal

personalityseparatefromitsownersanddirectors.

Itisaformalarrangement,surroundedbyformalityandpublicity.Chiefadvantage:member’sliabilityforthecompany’sdebtsistypicallylimited.

Whatiscompany?

(1)Definitio(2)DefinitionoflegalpersonalityItisacommonlawprinciplethatgrantsacompanyalegalentity,separatefromthememberswhocompriseit.Itistheveil.(2)Definitionoflegalperson(3)Consequencesofseparatepersonality(a)Limitedliability:

limitedtothenominalvalueoftheshareswhohelds.(b)Perpetualsuccession:anychangeinitsmembershipcan'tchangethecompany’sexistenceandthecompanyceasestoexistonlywhenitisformallywoundup.(c)Thecompanyownsthebusinesspropertyinitsownright:

shareholdersownshares,theydonotowntheassetsofthebusinesstheyhaveinvestedin

(MacauravNorthernAssurance(1925)).(3)Consequencesofseparatep(d)Thecompanyhascontractualcapacityitsownrightandcansueandbesuedinitsownname:membersarenotabletobindthecompany.TheruleinFossvHarbottleWhereacompanysuffersaninjury,itisforthecompany,actingthroughthemajorityofthemembers,totaketheappropriateremedialaction;anindividualcannotraiseanactioninresponsetoawrongsufferedbythecompany.(e)LiftingtheveilofincorporationThereareanumberofoccasions,whenthedoctrineofseparatepersonalitywillnotbefollowed.(d)ThecompanyhascontractuaMacauravNorthernAssuranceCoLtd(1925)Fact:Mformedacompanytobuyhisprevioustimberbusiness.However,heforgottotransfertheinsurancefromhisnametohiscompany.Thebusinessburntdown.Weretheinsurersrequiredtopaythisfee?Held:no,sinceitisunlawfultoinsureagainstanotherperson’sloss.MacauravNorthernAssuranceCAppendix:Theprincipleofseparatelegalpersonalitywasconfirmedbymorerecentcases,oneofwhichfollows.LeevLee’sAirfarmingLtd1960Fact:TheC,Mr.Lee,whoownedthemajorityofthesharesofanaerialcrop-sprayingbusiness,andwasthesoleworkingdirectorofthecompany,waskilledwhilepilotingtheaircraft.Decision:Althoughhewasthemajorityshareholderandsoleworkingdirectorofthecompany,heandthecompanywereseparatelegalpersons.Thereforehecouldalsobeanemployeewithrightsagainstitwhenkilledinanaccidentinthecourseofhisemployment.Appendix:Theprincipleofse2.Limitedliabilityofmembers(1)Definition:Itisaprotectionofferedtomembersofcertaintypesofcompany.Intheeventofbusinessfailure,thememberswillonlybeaskedtocontributeidenticalamountstoassetsofthebusiness.FordCo.CEOBillFord2004AGM

2.LimitedliabilityofmemberAmountpaidAssets100000Liability600000A30%(30000)FullB50%(50000)40000C20%(20000)0Q：Whocanthecreditorssueforpayingtheliability?Whatshouldtheshareholdersdo?

AmountpaidAssets100000LiabilitWhyXierbecame“white-hairgirl”?WhyXierbecame“white-hairgi(2)Function:(a)Protectionformembersagainstcreditors:thecreditorscannotdemandpaymentofthecompany’sdebtsanddebtsfrommembersofthecompany.(b)Protectionfrombusinessfailure:Thecompanyisliablewithoutlimitforallitsowndebts.(Whenthecompanyisunabletopayitsowndebts,thecompanymaywindup,whichwillenablethecreditorstobepaidfromtheproceedsofanyassetsremaininginthecompany.)(3)Althoughthecreditorsofthecompanycannotaskthemembersofthecompanytopaythedebtsofthecompany,therearesomeamountsthatmembersarerequiredtopay,intheeventofawindingup.Membersmayhavetopaymoneystillownedfrompurchasingtheirshares,orunderaguarantee.(2)Function:《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-formTypeCharactersLCbyshareslimitedtotheamountunpaidontheirsharesPrivate(Ltd)Public(Plc)ByguaranteelimitedtotheamountthattheyundertaketocontributewhenwinduptypicallycharitiesULC(a)Corporatebody;(b)Canonlybeaprivatecompany;(c)Members'liabilityisunlimited;(d)Benefittomemberisprivacyasaccountsmustbepreparedandauditedbutneednotbefiled.

3.TypesofcompanyTypeCharactersLCbyshareslimit(1)Fastforward:(a)Limitedliabilityonlytothemembers,notthecompany.(b)Guaranteecompanieshavetheadvantageofnothavingtoincludetheword"limited”inthename,althoughitstillmustappearonsomebusinessdocumentation.(1)Fastforward:GuaranteeLiabilityIfabusinessfails,asmallGuaranteecanprotecttheownersofacompanyfrompersonalloss,orevenbankruptcy.Unlessyouhavegivenanyseparateguaranteeforaparticulartransaction-oractedillegally-thedebtsarethecompany's,notyours.GuaranteeLiabilityIfabusineAppendix:Changeofstatus(a)Acompanymaychangefromlimitedtounlimitedorviceversa,butoncere?registeredmaynotchangebackagain.(b)s.49CA1985:Alimitedcompanymayre?registerasunlimited.(100%majorityrequired)(c)s.51CA1985:Anunlimitedcompanymayre?registeraslimited.(specialresolution)Appendix:Changeofstatus(a)(a)PrivateCompanies:Tendtobesmall.Theycannotissuesharestothe'public'.(b)PublicCompanies:

Tocertificateapubliccompany,theconditionsare:Name:endwithplc(ccc)MemorandumofassociationsaidtobesoAuthorizedcapital:minimum

￡50,000Limitedcompany(2)PublicandPrivateCompanies(a)PrivateCompanies:Tendto《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form(c)ListedCompanies

Sharesare'quoted'ontheStockExchangeandthuscanbetradedontheopenmarket.Theirsharesmusthaveamarketvalueofatleast￡700,000(usuallymore)beforea'listing'canbeobtained.上市公司需及時披露金融投資和重大合同中石油A股上市公司市全球第一(c)ListedCompaniesSharesarAboutminimum￡50,000Originalasplc:willnotbepermittedtotradeuntilitsallottedsharecapital≥￡50,000Re-registerasaplc:willnotbepermittedtotradeuntilitsallottedsharecapital≥￡50,000(25%paidupandthewholeofanypremium)Aboutminimum￡50,000OriginalpubliccompaniesPrivatecompaniesdirectors≥2,≤70(age),≥1RulesonloanMorestringent(includingtheirsubsidiaries)Capitalhaveminimum-issuedandpaid-upcapital(≥￡50,000)canofferitsshares/debenturestopublicNoMinimumamount.cannotofferitsshares/debenturestopublicNameMustenditsnamewithwordplcMustenditsnamewithwordlimited/LtdCommencementofbusinessAfterobtainacertificatefromtheregistrarAssoonasitisincorporated(d)DifferencesbetweenprivateandpubliccompaniespubliccompaniesPrivatecompanpubliccompaniesPrivatecompaniesChangeofstatus75%majoritytore-registerasprivate100%writtenconsenttore-registerasunlimited75%majoritytore-registeraspublicdistributionofdividendpaymentsthecontrolsoverthemarerelaxedtherequirementtokeepaccountingrecordsshorterWhethercanprovidefinancialassistanceforthepurchaseoftheirownsharesYesmaypurchasetheirownsharesoutofcapitalYespubliccompaniesPrivatecompan《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form(5)Group’sofcompaniesParentcompanySubsidiarycompanyOwensallthesharesofAcompanywhichproducesandmarketsitsproductinmorethanonecountry.CommonlyknownexamplesincludeCocaColaorNike.However,themajorityofcompaniesonlyoperateinonecountry.Multi-nationalcompanies(5)Group’sofcompaniesParent《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form(a)Onceincorporated,acompanyexistsasaseparatelegalpersonfromitsownersormembersandaveilofincorporationissaidtobedrawnbetweenthem.Bycontrast,anunincorporatedassociation,suchasapartnership,doesnothavealegalidentityseparatefromthatofitsmembers.ThedistinctionbetweenthemwasclearlyillustratedinthecaseofSalomon.Theveilofincorporationgivesrisetoanumberofimportantlegalconsequences.(Limitedliability,legalentity,Transferability,contractualcapacity)4.Practice：Veilofincorporation

(a)Onceincorporated,acompaIncertaincircumstance,theveilwillbeliftedIncertaincircumstance,thevApplytoEffectIndividualsandcompany(members,directors,managers…)Individualspersonallyliableforacompany’sdebts

restrictionsonindividualsmaybeextendedtothecompanycompaniesinthesamegroup(holdingcompany,subsidiaries)companiesinthesamegroupwillbetreatedasasinglecommercialentityMembersofcompanylimitedbyguarantee:giveaseparateguaranteetoaspecifictransactionandhaswrongfulactsApplytoEffectIndividualsand(b)Incertaincircumstance,theveilwillbeliftedwiththeresulteitherthat:thecompanywillbeidentifiedwithitsmembersordirectors,orthatanumberofcompaniesinthesamegroupwillbetreatedasasinglecommercialentity.(b)Incertaincircumstance,t(c)LiftingoftheveilbythecourtsThecourtmayignorethedistinctionbetweenacompanyanditsmembersandmanagersifthelatterusethatdistinctiontoevadetheirexistinglegalobligations.Asaresult,membersmaybemadepersonallyliableforacompany’sdebts

or

restrictionsonindividualsmaybeextendedtothecompany.(GilfordMotorCo.v.Horne)(c)Liftingoftheveilbythe(i)Breachofpublicinterest

(ReFGLtd1953)(ReFG(Films)Ltd(1953),wherethemajorshareholderofthecompanywasthepresidentofaUScompanyandthecompanywasformedforsolepurposeofenablingafilmqualifyasaBritishfilm)(ii)toevadeliabilities

(ReHandOthers,1996)(ⅲ)toevadetaxation

(UnitConstructionCoLtdv.Bullock(InspectorofTaxes))(ⅲ)toevadetaxation(UnitConstructionCoLtdv.Bullock(InspectorofTaxes))(ⅳ)Quasi-partnership:torevealthecompanyasaquasi-partnership.Wherethecompanyonlyhasafewmembers,allofthemareinvolvedinitsaffairs,theindividualswhohaveoperatedcontentedlyasacompanyforyearsfalloutandoneormoreofthemseekstoremovetheothers.(i)BreachofpublicinterestIneachofthesecasestheveilwasliftedtoidentifyacompanywithitsmembersordirectors.Itcanalsoberaisedsoastoeliminatethedistinctionbetweencompanies,thatis,totreatgroupsasasinglelegalentity.InAdamsvCapeIndustries1990,thecourtofAppealsuggestedthattheveilmightbeliftedonlywhere:thesubsidiaryisactingasagentfortheholdingcompany;thegroupistobetreatedasasingleeconomicentity;

thecorporatestructureisbeingusedasashamtoconcealthetruth.Ineachofthesecasesthevei(d)Liftingoftheveilbystatute(i)FraudulentTrading:Directorsandotherofficersmaybebecomeliablepersonallyliableforacompaniesdebts,iftheyengageinfraudulentorwrongfultradingorparticipateinthemanagementofacompanyincontraventionofanorderundertheCDDA1896.(Thisisalsoacriminaloffence.)(ii)Failuretoobtainatradingcertificate(plcsonly).(d)Liftingoftheveilbysta(ⅲ)Solemember:Publiccompaniesmusthaveatleast2members.Breachofthisrulemakestheremainingmemberjointlyandseverallyliablewiththecompanyiftheyareawareofthefactandthesituationexistsformorethan6months.(Liabilityisonlyinrelationtodebtsincurredaftertheinitial6monthperiod.)Otherexamplesofliftingtheveil:personalguaranteesbymembers/directors;preparationofgroupaccounts; undertaxlaw.(ⅲ)Solemember:PubliccompanGilfordMotorCo.v.HorneFact:Mr.Hornewasanex-employeeofTheGilfordmotorcompanyandhisemploymentcontractprovidedthathecouldnotsolicitthecustomersofthecompany.Inordertodefeatthis,heincorporatedalimitedcompanyinhiswife'snameandsolicitedthecustomersofthecompany.Thecompanybroughtanactionagainsthim.Held:itwasclearthatthemainpurposeofincorporatingthenewcompanywastoperpetratefraud.Thusthecourtofappealregardeditasamereshamtocloakhiswrongdoings.Commend:Theveilwasliftedtopreventthecircumventionofarestraintoftradeclause.GilfordMotorCo.v.HorneToevadeTaxUnitConstructionCoLtdv.Bullock(InspectorofTaxes)Fact:Threecompanies,whollyownedbyaUKcompany,wereregisteredinKenya.Althoughthecompany’sconstitutionsrequiredboardmeetingstobeheldinKenya,all3wereinfactmanagedentirelybytheholdingcompany.Held:The3companieswereresidentinUKandliabletoUKtax.TheKenyaconnectionwasasham,thequestionbeingnotwheretheyoughttohavebeenmanaged,butwhereweremanaged.ToevadeTaxUnitConstructionSummaryofsituationsinwhichtheveilcanbeliftedToenforcelawToenforceobligationsToexposegroupsLiabilityofasolememberfordebtsLegalobligationsSingleeconomicabilityWronguseofcompanynameQuasi-partnershipCorporatestructureashamDisqualifieddirectorsPublicinterestFraudulentandwrongfultradingSummaryofsituationsinwhich《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-formPractice：PartnershipVCompanyThereareanumberofadvantages(a)Legalentity:mostimportantfactor;acompanyisadistinctlegalentityseparatefromitsmemberswhereasinapartnershipthereisnoseparatelegalpersonasdistinctfromthepartners.Thismeanstheassetsandliabilitiesofthebusinessbelongtothecompanyitself.(b)Limitedliability:Ifthecompanybecomesinsolvent,theshareholdersarenotliableforthecompany’sdebts,unlesstheyremainunpaidshares.Apartnerisnormallyjointlyandseverallyliableforallthedebtsofthefirmtotheextentofhisorherpersonalwealth.Practice：PartnershipVCompany(c)Perpetualsuccession:Inthecaseofcompanies,thereisnocessationbroughtaboutbyachangeinthemembership,butanychangeofpartnersinapartnershipoperatesasaterminationoftheoldpartnershipandthebeginningofanewone.(d)Transferability:Subjecttoanyrestrictionsimposedbythecompany’sconstitution,acompanymember’ssharesconstituteaformofpropertyandarefreelytransferable.Althoughapartnercanassignhisinterest,theassigneeofitwillnotasaresultbecomeapartnerinapartnership.(c)Perpetualsuccession:Int(e)Capitalandsecurity:Acompanymayfinditeasiertoraisecapitalfortheexpansionofthebusinessthanapartnershipsincetheliabilityofpotentialinvestorsislimitedandacompanycanborrowbydebenturesandloanstock.Furthermore,acompanycanraisecapitalbyprovidingafixedorfloatingchargeassecuritybutapartnershipcannotprovidesecuritybywayofafloatingcharge.Thereare,forthebenefitofshareholders,variousrulesandregulations,containedintheCompaniesActandthecompany'sconstitution,whicharestringentlyappliedrelatingtothereductionordistributionofacompany’scapitalwhereasinthecaseofapartnershippartnersmay，bymutualagreement,withdrawcapitalfromthepartnershipastheywish.(e)Capitalandsecurity:AcoAnglo-AmericanBusinessLawChapter4

Thecompanyform Anglo-AmericanBusinessLawCompanylawFormationCapitalManagementInsolvencyCompanyFormationCapitalManagemLearningObjectives:Tolearnsomeknowledgeaboutlegalpersonalityandtolearnsomeknowledgeaboutthedifferentregulationstodifferenttypesofcompanies.Chapter4Thecompanyform LearningObjectives:Chapter4Topiclist1.Distinctionbetweensoletraders,partnershipsandcompanies2.Limitedliabilityofmembers3.Typesofcompany4.Effectoflegalpersonality5.Ignoringseparatepersonality----liftingtheveilofthecompanyPiercingthecorporateveil

Topiclist1.DistinctionbetwSoletrdderSoletrdderSalomonv.Salomon&CoLtd.

Facts:Mr.Salomonwasaprosperousleathermerchant,whodecidedtoconverthisbusinessintolimitedcompany.HeincorporatedSalomon&CoLimited,withhimself,hiswifeandhisfivechildrenasdirectors.ThecompanypurchasedthebusinessandS&CLtdhadtopayforthebusiness:Salomonv.Salomon&CoLtd.F￡38,782￡20,007sharecapital￡10,000debentures

￡8,782cashsecured--Mr.S

20001—Mr.S6—othershareholdersunsecured--othercreditors￡38,782￡20,007￡10,000￡8,782sThecompanyranintofinancialdifficulties,andthedebentureholdersappointedareceiver.Thereceiversoldoffallofthecompany'sassets,whichweresufficienttopayoffthedebentureholders,butnothingwasleftfortheunsecuredcreditors.ImaginewhetherSwouldbeawardedtheassetsowedbyS&CLtd?Why?SwasseparatefromS&CLtd

(veil)

hewasasecuredcreditor(throughthedebenture)ThecompanyranintofinancialItestablishedthatacompanyisaseparatelegalentityaseparatelegalentitygivesrisetomanyofitscharacteristicsthemostimportantofthemislimitedliabilityforthemembersofthecompanyItwasthedecisionoftheHouseofLordsrelatingtolimitedliabilityforthemembersofcompaniesunderEnglishlaw.ItestablishedthatItwastheWhatiscompany?

(1)DefinitionofcompanyItisalegalentityregisteredundertheCompanyAct1985.keyfeature:ithasalegal

personalityseparatefromitsownersanddirectors.

Itisaformalarrangement,surroundedbyformalityandpublicity.Chiefadvantage:member’sliabilityforthecompany’sdebtsistypicallylimited.

Whatiscompany?

(1)Definitio(2)DefinitionoflegalpersonalityItisacommonlawprinciplethatgrantsacompanyalegalentity,separatefromthememberswhocompriseit.Itistheveil.(2)Definitionoflegalperson(3)Consequencesofseparatepersonality(a)Limitedliability:

limitedtothenominalvalueoftheshareswhohelds.(b)Perpetualsuccession:anychangeinitsmembershipcan'tchangethecompany’sexistenceandthecompanyceasestoexistonlywhenitisformallywoundup.(c)Thecompanyownsthebusinesspropertyinitsownright:

shareholdersownshares,theydonotowntheassetsofthebusinesstheyhaveinvestedin

(MacauravNorthernAssurance(1925)).(3)Consequencesofseparatep(d)Thecompanyhascontractualcapacityitsownrightandcansueandbesuedinitsownname:membersarenotabletobindthecompany.TheruleinFossvHarbottleWhereacompanysuffersaninjury,itisforthecompany,actingthroughthemajorityofthemembers,totaketheappropriateremedialaction;anindividualcannotraiseanactioninresponsetoawrongsufferedbythecompany.(e)LiftingtheveilofincorporationThereareanumberofoccasions,whenthedoctrineofseparatepersonalitywillnotbefollowed.(d)ThecompanyhascontractuaMacauravNorthernAssuranceCoLtd(1925)Fact:Mformedacompanytobuyhisprevioustimberbusiness.However,heforgottotransfertheinsurancefromhisnametohiscompany.Thebusinessburntdown.Weretheinsurersrequiredtopaythisfee?Held:no,sinceitisunlawfultoinsureagainstanotherperson’sloss.MacauravNorthernAssuranceCAppendix:Theprincipleofseparatelegalpersonalitywasconfirmedbymorerecentcases,oneofwhichfollows.LeevLee’sAirfarmingLtd1960Fact:TheC,Mr.Lee,whoownedthemajorityofthesharesofanaerialcrop-sprayingbusiness,andwasthesoleworkingdirectorofthecompany,waskilledwhilepilotingtheaircraft.Decision:Althoughhewasthemajorityshareholderandsoleworkingdirectorofthecompany,heandthecompanywereseparatelegalpersons.Thereforehecouldalsobeanemployeewithrightsagainstitwhenkilledinanaccidentinthecourseofhisemployment.Appendix:Theprincipleofse2.Limitedliabilityofmembers(1)Definition:Itisaprotectionofferedtomembersofcertaintypesofcompany.Intheeventofbusinessfailure,thememberswillonlybeaskedtocontributeidenticalamountstoassetsofthebusiness.FordCo.CEOBillFord2004AGM

2.LimitedliabilityofmemberAmountpaidAssets100000Liability600000A30%(30000)FullB50%(50000)40000C20%(20000)0Q：Whocanthecreditorssueforpayingtheliability?Whatshouldtheshareholdersdo?

AmountpaidAssets100000LiabilitWhyXierbecame“white-hairgirl”?WhyXierbecame“white-hairgi(2)Function:(a)Protectionformembersagainstcreditors:thecreditorscannotdemandpaymentofthecompany’sdebtsanddebtsfrommembersofthecompany.(b)Protectionfrombusinessfailure:Thecompanyisliablewithoutlimitforallitsowndebts.(Whenthecompanyisunabletopayitsowndebts,thecompanymaywindup,whichwillenablethecreditorstobepaidfromtheproceedsofanyassetsremaininginthecompany.)(3)Althoughthecreditorsofthecompanycannotaskthemembersofthecompanytopaythedebtsofthecompany,therearesomeamountsthatmembersarerequiredtopay,intheeventofawindingup.Membersmayhavetopaymoneystillownedfrompurchasingtheirshares,orunderaguarantee.(2)Function:《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-formTypeCharactersLCbyshareslimitedtotheamountunpaidontheirsharesPrivate(Ltd)Public(Plc)ByguaranteelimitedtotheamountthattheyundertaketocontributewhenwinduptypicallycharitiesULC(a)Corporatebody;(b)Canonlybeaprivatecompany;(c)Members'liabilityisunlimited;(d)Benefittomemberisprivacyasaccountsmustbepreparedandauditedbutneednotbefiled.

3.TypesofcompanyTypeCharactersLCbyshareslimit(1)Fastforward:(a)Limitedliabilityonlytothemembers,notthecompany.(b)Guaranteecompanieshavetheadvantageofnothavingtoincludetheword"limited”inthename,althoughitstillmustappearonsomebusinessdocumentation.(1)Fastforward:GuaranteeLiabilityIfabusinessfails,asmallGuaranteecanprotecttheownersofacompanyfrompersonalloss,orevenbankruptcy.Unlessyouhavegivenanyseparateguaranteeforaparticulartransaction-oractedillegally-thedebtsarethecompany's,notyours.GuaranteeLiabilityIfabusineAppendix:Changeofstatus(a)Acompanymaychangefromlimitedtounlimitedorviceversa,butoncere?registeredmaynotchangebackagain.(b)s.49CA1985:Alimitedcompanymayre?registerasunlimited.(100%majorityrequired)(c)s.51CA1985:Anunlimitedcompanymayre?registeraslimited.(specialresolution)Appendix:Changeofstatus(a)(a)PrivateCompanies:Tendtobesmall.Theycannotissuesharestothe'public'.(b)PublicCompanies:

Tocertificateapubliccompany,theconditionsare:Name:endwithplc(ccc)MemorandumofassociationsaidtobesoAuthorizedcapital:minimum

￡50,000Limitedcompany(2)PublicandPrivateCompanies(a)PrivateCompanies:Tendto《英美商業法-Anglo-American-Business-Law》課件-第4章-The-company-form(c)ListedCompanies

Sharesare'quoted'ontheStockExchangeandthuscanbetradedontheopenmarket.Theirsharesmusthaveamarketvalueofatleast￡700,000(usuallymore)beforea'listing'canbeobtained.上市公司需及時披露金融投資和重大合同中石油A股上市公司市全球第一(c)ListedCompaniesSharesarAboutminimum￡50,000Originalasplc:willnotbepermittedtotradeuntilitsallottedsharecapital≥￡50,000Re-registerasaplc:willnotbepermittedtotradeuntilitsallottedsharecapital≥￡50,000(25%paidupandthewholeofanypremium)Aboutminimum￡50,000OriginalpubliccompaniesPrivatecompaniesdirectors≥2,≤70(age),≥1RulesonloanMorestringent(includingtheirsubsidiaries)Capitalhaveminimum-issuedandpaid-upcapital(≥￡50,000)canofferitsshares/debenturestopublicNoMinimumamount.cannotofferitsshares/debenturestopublicNameMustenditsnamewithwordplcMustenditsnamewithwordlimited/LtdCommencementofbusinessAfterobtainacertificatefromtheregistrarAssoonasitisincorporated(d)DifferencesbetweenprivateandpubliccompaniespubliccompaniesPrivatecompanpubliccompaniesPrivatecompaniesChangeofstatus75%majoritytore-r