SS1: COMMERCE - 3RD TERM
Associations and Enterprises | Week 13 Topics
Co-operative Societies I | Week 23 Topics
Co-operative Societies II | Week 33 Topics|2 Quizzes
Public Enterprises | Week 45 Topics|1 Quiz
Limited Liability Companies | Week 54 Topics
Formation of Limited Liability Companies | Week 61 Topic
Limited Liability Companies III | Week 73 Topics|3 Quizzes
Sources of Capital of Limited Liability Companies
Advantages and Disadvantages of Limited Liability Companies
Liquidation or Winding up
- Sources of Capital of Limited Liability Companies
Trade Associations and Other Enterprises | Week 81 Topic
Chamber of Commerce | Week 91 Topic
Other Forms of Trade Association | Week 101 Topic|1 Quiz
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Meaning of Limited Liability Company
This could be defined as a company where the liability of members who formed the business is limited to the amount contributed as capital to the business. It means that the owners of these companies stand to lose only the amount contributed and not their private properties.
Features or Characteristics of a Limited Liability Company:
1. Ownership: The business is owned by shareholders who may be between two and fifty persons in number.
2. Objective: The major aim of a private limited company is to make a profit.
3. Source of Capital: The capital required to set up and run the business is provided by the shareholders in form of shares.
4. Liability: The shareholders have limited liability.
5. Legal Entity: The business is a separate legal entity and is different from the owner of the business.
6. Continuity: There is continuity of business operations as the withdrawal or death of a shareholder may not affect the existence of the company.
7. Shares are not Easily Transferable: Shares cannot be resold to other persons except with the consent of other shareholders.
8. Management: The private limited company is managed by a board of directors appointed by shareholders.
There are two types of limited liability companies namely;
1. Private Limited Liability Company
2. PublicLimited Liability Company