Unlimited and limited liability companies in Nigeria?

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Unlimited and Limited liability Company

Unlimited and limited company in company in Nigeria

What is company?

 

Is defined as as an association of individual who come together and jointly pool there capital together In order to set up or establish a business venture.There are two registered different companies here in Nigeria, which perfumes a different roles in times of there functions.

Two registered company in Nigeria

1: Unlimited liability companies

2 : Limited liability companies

 

Unlimited liability companies

These is a type of company,in which there liability or burden of debt is unlimited. So in this situation,the share holders doesn’t has fixed capital contribution in forming and management of the company. Any case of liquidation or bankrupty,the shares holders will contribute to extent it will effect his or her private property.

Who are share holders?

Share holders are people who join there capital or resources in order to run a business dividend or profit.

 Limited liability company

These is a type of company that there liability is limited. That is when an individual is share holders of this company,he or she most contribute the capital that been agreed upon without paying extra capital,in the time of liquidation or bankrupty.Limited liability company is in two different types.

Types of limited liability company

 

1 : Company limited by qurantee

2 : Company limited by shares

 

Company limited by qurantee

This is a type of company that been set up not to make profit but to promote educational Art, religion science activities and they are not with huge capital. In any case of liquidation, the share holders of the company can decide to contribute extra capital in running and managing the company. Some of the members of the public can also give contribution to the company.

Company limited by shares

This is a type of company in which shares or capital are been contributed by the share holders are limited. The share holders under the company serves as the owners of the business and it is also known as joint limited company. Company limited by shares is been classified in two types , such as public and private company by shares. Now I will like to give you hint about this two shares liability company  in Nigeria.

Types of limited company by shares in Nigeria

1: Public limited liability company

2 : private liability company

 

Public limited liability company

This type of company here in Nigeria,it has only a minimum of seven members and  it doesn’t has a particular maximum members. Now under these company,there share is transferable and it is open for all the members of the public to contribute their capital and also buy share under the company.

Private limited liability company by share

Here this type of company has a minimum of number of two members and maximum number of fifty member, excluding their employees. These two types of company  has many difference between both of them.

Different between public and private liability company by share

1 The public is known as  P.L.C (plc) that’s the abbreviation. While the private is known as LTD

2  : Public limited liability by share  have minimium of seven and no exact maximum number.while the private  have minimum number of two and maximum number of fifty.

3 :  Public company issue departure. While private issue no departure.

4 : The public company share is transferable, but the private share is not.

This are how company in Nigeria runs the activities of the there company.

 

 

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