Commentary

42 Types of company under the companies legislation

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

42 Types of company under the companies legislation

| Commentary

2: FORMING A LIMITED COMPANY

(a) Preliminary decisions

42 Types of company under the companies legislation

Assuming that the proprietors of a new business have decided to operate through the medium of a company, the next decision is which is the most appropriate type of company to use. Essentially, three types of company may be incorporated under the Companies Act 2006: a company limited by shares; a company limited by guarantee; and an unlimited company.

A company is limited by shares if the liability of the members is limited to the amount, if any, unpaid on the shares held by them1. A company

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