According to Section 21 (1) of CAMD 1990, an incorporated company may be
either a company: –
either a company: –
(a) Having the liability of
its members limited by the memorandum to the amount if any, unpaid on the
shares respectively held by them (in this Decree termed “a company limited by
share”); or
its members limited by the memorandum to the amount if any, unpaid on the
shares respectively held by them (in this Decree termed “a company limited by
share”); or
(b) Having the liability of
its members limited by the memorandum to such amount as the member may
respectively thereby undertake to contribute to the assets of the company in
the event of its being wound up (in this Decree termed “a company limited by
guarantee” or
its members limited by the memorandum to such amount as the member may
respectively thereby undertake to contribute to the assets of the company in
the event of its being wound up (in this Decree termed “a company limited by
guarantee” or
(c) Not having any limit on
the liability of its members (in this Decree termed “an unlimited company”).
the liability of its members (in this Decree termed “an unlimited company”).
Sub-section 2 of the same section states that a company of any of the
foregoing types may be a private company or a public company.
foregoing types may be a private company or a public company.
In Section 22
(1) A private company is one
which is shared in its memorandum to be a private company.
which is shared in its memorandum to be a private company.
(2) Every private company
shall by its articles restrict the transfer of its shares.
shall by its articles restrict the transfer of its shares.
(3) The total numbers of
private company shall not exceed 50, not including persons who are bonafide in
the employment of the company, or were while that employment and have continued
after the determination of that employment to be, members of the company.
private company shall not exceed 50, not including persons who are bonafide in
the employment of the company, or were while that employment and have continued
after the determination of that employment to be, members of the company.
In sub-section 5, a private company shall not unless authorized by law
the public to-
the public to-
(a) Subscribe for any share(s)
or debentures of the company; or
or debentures of the company; or
(b) Deposit money for fixed
periods or payable at call, whether or not bearing interest.
periods or payable at call, whether or not bearing interest.
For public companies, Section 24 of CAMD 1990 states that any company
other than a private company shall be a public company and memorandum shall
state that it is a public company.
other than a private company shall be a public company and memorandum shall
state that it is a public company.
The shares of a public company are quoted or listed in the stock
exchanged market. Their shareholders change in a continuous basis and their
ownership change on a continuous basis.
exchanged market. Their shareholders change in a continuous basis and their
ownership change on a continuous basis.
According to Section 29 (1) of CAMD 1990, the name of a private company
limited by share shall end with the word ‘Limited”
(Ltd.)
limited by share shall end with the word ‘Limited”
(Ltd.)
(2) The name of public
company limited by share shall end with the words “Public Limited Company”. (Plc)
company limited by share shall end with the words “Public Limited Company”. (Plc)
(3) The name of a company
limited by guarantee shall end with the words “Limited by Guarantee)’ in brackets.
limited by guarantee shall end with the words “Limited by Guarantee)’ in brackets.
(4) The name of an unlimited
company shall end with word “Unlimited”
company shall end with word “Unlimited”
