ZIMSEC O Level Business Studies Notes: The Features of a Private Limited Company
- These are closely held limited liability companies usually owned by friends and family.
- A private limited liability company is treated as a separate juristic person
- This means it can sue and be sued in its own name and
- it does not cease to exist upon death of one of its shareholders.
- The number of shareholders is limited from 2-50 and
- The sale of shares on the private on the Stock exchange is prohibited.
- Shareholders’ right to sell shares is limited.
- Shareholders can operate the company themselves or
- They can elect a Board of Directors during the Annual General Meeting (AGM) to operate the business on their behalf.
- The name ends with the words Private Limited Company (PVT LTD) or some other equivalent words,
- Its affairs are governed by the Memorandum and Articles of Association,
- It is registered under the Companies Act
NB Visit this page to view the advantages and disadvantages of a Private Limited Company.
To access more topics go to the O Level Business Notes page.