Match each type of company listed on the left with its defining statutory characteristic or legal restriction on the right.
- Private Limited Company (Ltd)Restricts share transferability, caps membership, and prohibits invitations to the general public to subscribe for shares.
- Public Limited Company (Plc)Offers shares to the general public, requires a minimum authorized share capital, and has no statutory limit on maximum membership.
- Company Limited by GuaranteeFormed without share capital, where members pledge a fixed nominal amount to cover liabilities upon winding up.
- Unlimited CompanyExposes members to personal financial liability without limit for all corporate debts in the event of liquidation.
Answer
Private Limited Company matches with restriction on public share subscription; Public Limited Company matches with public share invitations and no membership ceiling; Company Limited by Guarantee matches with member fixed financial undertakings instead of share capital; Unlimited Company matches with full personal liability of members for corporate debts.
Each corporate entity is matched according to its governing legal framework: Private Limited Companies restrict share transfers and public subscription; Public Limited Companies allow public share invitations without membership ceilings; Companies Limited by Guarantee rely on member guarantee commitments rather than share capital; and Unlimited Companies leave members personally liable without limit for corporate debts.
Step-by-Step Solution
Key Concept
Classification and legal characteristics of registered corporate entities under company law
Estimated Time:1m 0s