answersLogoWhite

0

They are not required by law to appoint an auditor to protect the shareholders, but many do. This is not only to protect the shareholders, but to protect the company as well.

User Avatar

Wiki User

11y ago

What else can I help you with?

Continue Learning about Accounting

Analyze the benefits which a private limited company might gain by becoming a public limited company?

A public limited companies is a small to medium sized business owned by shareholders who are often members of the same family or friends.


Private Limited Company advantages and disadvantages?

Private Limited Companies have both advantages and disadvantages. Some of the positives are that liability is limited which means that the assets of the shareholders are not at risk if the business gets into financial trouble, the business is never affected by the status of an owner, and it is easy to raise capital as this type of business is allowed up to 50 shareholders. Some of the drawbacks are that shares cannot be transferred without the approval of the other shareholders and that growth might be limited due to the fact that no more than 50 shareholders are permitted.


What does the legal structure of business mean?

Its when you decide what your business is going to be about and what products your going to sell! It means a partnership, public company, or a private company structure.


Does tesco plc have limited or unlimited liability?

it is a plc therefore it has unlimited liabilty, it's shareholders however, have limited liability.


What are the differences between a sole proprietorship and limited liability corporation?

In a limited liability corporation, the company is not personally liable for it, and the owners and shareholders will not get personally sued, only the company will. It has a high start up cost, and it has a long life. Sole proprietorship's have a low start up cost, generally have short life spans, and are personally liable,

Related Questions

How do you set up as a limited company?

To set up as a limited company, you need to choose a unique name, register with Companies House, appoint directors and shareholders, create a memorandum and articles of association, and issue shares.


What are the eligibility criteria for company registration in Sweden?

To register a company in Sweden, you must meet the following alliances: Minimum Capital: A minimum of 25,000 SEK is required for a limited company. Directors: A limited company must have at least one board member. Auditor: A public limited company must appoint an auditor. Residency: At least half of the board of directors must reside within the European Economic Area (EEA).


Who owns a public limited company?

A public limited company is owned by its shareholders


Who owns a private limited company?

Shareholders


Why do tesco have shareholders?

because it is a public limited company


What is the minimum number of directors and shareholders required to register a Private Limited Company in India?

The minimum number of directors required to register a Private Limited Company in India is two, and the minimum number of shareholders required is also two. The same individuals can be both directors and shareholders. The maximum number of shareholders allowed in a Private Limited Company is 200.


Who owns public limited company?

A PLC ( public limited company) is owned by shareholders, i.e who buys the share....


Who controls a public limited company?

The Directors control a public limited company. Directors are appointed by Shareholders in AGM.


What company has the largest number of shareholders?

Reliance Industries Limited


What is owned by a limited number of shareholders?

Common Stock in a company.


What is the function of a limited company?

A limited company (Ltd) is that which is limited by shares and listed on the stock market. Its function is ultimately to make profit for its shareholders.


What is the difference between ltd and plc?

Ltd is private limited company, it is in the public sector and has limited liability, the only shareholders arre family and friends, PLC is public limited company and anyone can be shareholders. a PLC is open to anyone from the public and a Ltd is only shareholders, family and friends.