Lamasat is an example of a Private Limited Company. Image credit topnews.co.zw

Lamasat is an example of a Private Limited Company.

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.

- See latest Zimbabwe grocery prices -

Deals

SEE LATEST SUPERMARKET PRICES, SHOP FOR GROCERIES VIA WHATSAPP
SEE PRICES & NEWS
We publish the latest grocery prices from Zimbabwean supermarkets. We also deliver groceries online

Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, click here to enter your query.