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Jackson24 Posted 15 years ago
Business & Finance
What is the meaning of limited company?
I normally reads about UK limited company but i have no information about it. what is UK limited company.
Top answer
As I understand it (the system has recently changed), 'Ltd' indicates a privately owned company while 'PLC' indicates a public limited company whose shares can be bought at the stock exchange. In both cases, by legislation and upon registration, the company becomes a financially responsible entity distinct from its owner(s), so that company liabilities are not the personal liabilities of the owner(s). This means that if the company goes bankrupt, for instance, its payback of outstanding debt is limited to what the company's liquidated assets can reimburse.
- As I understand it (the system has recently changed), 'Ltd' indicates a privately owned company while 'PLC' indicates a public limited company whose shares can be bought at the stock exchange.
- In both cases, by legislation and upon registration, the company becomes a financially responsible entity distinct from its owner(s), so that company liabilities are not the personal liabilities of the owner(s).
- This means that if the company goes bankrupt, for instance, its payback of outstanding debt is limited to what the company's liquidated assets can reimburse.
- The owner's house, car and other property are not forfeit.
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2 Answers
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As I understand it (the system has recently changed), 'Ltd' indicates a privately owned company while 'PLC' indicates a public limited company whose shares can be bought at the stock exchange. In both cases, by legislation and upon registration, the company becomes a financially responsible entity distinct from its owner(s), so that company liabilities are not the personal liabilities of the owner
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