The limited company structure is one of the most popular business models and is suitable for all businesses, large or small.
A limited company is responsible for its own liabilities and debts, but also owns any profit that it makes. In law, it is recognised as a legal person or entity.
The business can be for profit (limited by shares) or, less commonly found, not for profit (limited by guarantee). A company limited by shares is run by directors who are responsible and accountable to the shareholders who are the members of the company. If it is limited by shares then the liabilities are limited to the value of the share capital. Should the company get into financial difficulties the personal assets of the shareholder members of the company are protected. The members are only financially responsible for amounts up to the equivalent value of their shares. In most circumstances the directors also have the protection of limited liability.
A limited company requires legal services like any unincorporated entity. However, because it is a separate legal person, some laws are specific to a company or corporate body. There are also separate laws which cover shareholders and directors. We are specialists in many areas of law for limited companies and their owners.
How we can help
Our expert team of business lawyers are on hand to give you advice on any aspect of running a limited company, including:
- Company formation
- Articles of Association
- Shareholder agreements
- Leases and property
- Debt recovery
- Terms and conditions of business
- Website statutory disclosures
- Director contracts and duties
- Drafting policies and procedures
- Employment related issues
- Succession planning – wills and probate
- Succession planning – tax and trusts
Atherton Godfrey is a member of Lawyers for Your Business, an innovative legal support service operated by the Law Society.
If you would like guidance on converting to a limited company, on drawing up a member agreement, or on any business related issue, please contact our team today.