| Commentary

43 Private and public companies

| Commentary

43 Private and public companies

Assuming that the proprietors of the business choose a company limited by shares, the next decision is whether to operate through a private or a public company.

In most cases, the proprietors will only choose a public company if they wish to invite members of the public to subscribe for shares in the company. Only a public company is allowed to do this1. Indeed, under the regime introduced by the Companies Act 2006 as from 1 October 2009, a private company limited by shares which offers any securities of the company to the public, or which

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