Private Business Corporation

Private Business Corporation

• found in the private sector.
• Governed by the Private Business Corporation Act of 1993.
• A cross between partnerships and limited companies.
• A legal entity or body corporate which can sue or be sued in its own name.
• Formed by a minimum of one to a maximum of twenty members.
• Prepare an incorporation statement and drafts by-laws.
• Pays a fee, to the Registrar of Companies for the registration and processing of the incorporation statement and bylaws.
• Members have limited liability.
• There is continuity even if one of the members leaves or dies.
• Its name ends with the words Private Business Corporation or the capitalised abbreviation PBC.
• Every member is an agent of the PBC.
• All members are directors and choose a chairman to run the affairs of the business.
• Every member takes part in the managing the affairs of the business.
• No remuneration is paid to members for taking part in the managing of the business.
• Any contract entered into by one member is binding on all members.
• Any disputes about the affairs of the business are settled by a majority decision.
• Each member contributes capital in the form of cash, assets or services to the PBC.
• Can be converted into a company with not more than 20 members.
• No partnership, association or body corporate or any other legal person or any person convicted of theft, forgery or fraud can be a member.
• Any member, may at any time convene a meeting by giving all members notice of the time and place and purpose of the meeting.
• The chairman of the meeting can be any member.
• The chairman does not cast any votes.
• Each member has a vote equivalent to the percentage of capital they contributed.
• Financial statements are prepared at least once annually.
• They are private.
• They are sent to the Registrar of Companies.
• Are approved and signed by one or more members whose capital aggregate is more than fifty percent.

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