COMPANIES in the UK short

COMPANIES in the UK

PRIVATE vs. PUBLIC COMPANIES

PUBLIC

Their shares can be publicly traded, often on a regulated stock exchange
They are able to raise funds and capital through the sale of their securities so they can easily raise capital
They may distribute their securities instead of the salary for those that provide services to the company, such as their directors, officers, and employees
Their securities typically have an established market value at any given time as determined by the price the security is sold for on the stock exchange where the security is traded
They have to file Form 10-K - an annual report required by the SEC(Securities and Exchange Commission – Komisja Papierów Wartościowych i Giełd) each year that is a comprehensive summary of a company's performance (financial information)
They can pay cash to their shareholders and become private (but it is less common)
They can become private when purchased by a larger company that is private
The value or "size" of a public company is called its market capitalization ( "market cap"). This is calculated as the number of shares outstanding (not yet paid = w obiegu) times the price per share

PRIVATE

They do not have publicly traded shares, and often contain restrictions on transfers of shares
Sometimes private companies have maximum numbers of shareholders
They may also give their securities as compensation for services, but the recipients of those securities often have difficulty selling them on the open market
They don’t have to give any financial information because it could be useful to competitors

(do not have to file Form 10 – K)

Small companies are mainly privately owned
After a number of years, if a company has grown significantly and is profitable, or has promising prospects, there is often an initial public offering which converts the private company into a public company or an acquisition of a company by public company

FEATURES

The memorandum of association
- name of the company
- registered office
- company objectives
- must be signed by each subscriber in front of a witness
The articles of association

a statutory declaration of obedience with all the legal requirements relating to the incorporation of a company --> compliance with the law
must be signed by a solicitor or by one of the people named as a director or company secretary in the presence of a commissioner for oaths, a notary public, a justice of the peace or a solicitor

Formally they are not directors but they fulfil all the director’s duties because the real director is incompetent

has shareholders with limited liability
its shares may not be offered to the general public
has shareholders, and that the liability (responsibility) of the shareholders to creditors (money is owed to them) of the company is limited to the capital originally invested
it may be private or public
it is required to have suffix Ltd.
One or more persons can form it
It must have at least one director and a secretary (the requirement to have a secretary will be removed from April 2008)
Person declared bankrupt or banned to be a director by the court cannot be a director
From October 2008 all directors will have to be over the age of 16
Share capital: only 2 pounds
Shares in a private company are usually transferred by private agreement between the seller and the buyer
Every company must have a registered office, which does not need to be its usual business address. It is sometimes the company's lawyers or accountants, for example. All official letters and documentation from the government departments will be sent to this address.

used primarily for non-profit organisations that require legal personality
no share capital
guarantors (someone who formally accepts responsibility for you or for something that belongs to you) instead of shareholders
it cannot distribute its profits to its members
it can have a charitable status
clubs
membership organizations (students’ unions, sports associations)
non-governmental organizations
charities (e.g. Oxfam)

liability of the members is unlimited – they have to give whatever sums are required to pay the debts
this is not a common form of company
It can be registered online for fees of approximately £250 plus Vat

5) A community interest company (CIC)

introduced by the United Kingdom government in 2005
designed for social enterprises
use their profits and assets for the public good
the income is devoted to social objectives rather than reinvested to make profit for shareholders and owners
There is no single legal model for social enterprise (many kinds of companies)

6) Charter corporations

Formed by the Royal Charter given by the authority , to legitimize an incorporated body, such as a city, company, university or such
Among 750 or so organizations with Royal Charters are cities; the BBC; theatres such as the Royal Opera House; Britain's older universities; professional institutions and charities
A Royal Charter is the manner in which a British town is raised to the rank of city

7) Statutory companies

8) Companies formed by letters patent (document nadania praw)

*** Offshore company