What is a private company limited by shares?

This article provides a short discussion regarding the characteristics of a private company limited by shares.

A private company limited by shares is a company that has share capital and the liability of its members is restricted to the proportionate amount of the shares they hold and have not been paid to the company yet.

Such company must at least has one member (shareholder) and cannot have more than 50, without counting the number of persons that are or have been to the service of the company and are or continue to be members (shareholders) of the company.

Also, a private company must have at least one director.

A private company limited by shares cannot offer its shares to the public. Furthermore, the transfer of its shares shall be restricted by its articles of association.  

For more information regarding the laws governing private companies limited by shares you can refer to Cap. 113.

This article has been written by Chara Palekythriti, Lawyer - Legal Consultant ©

Disclaimer: This article is for informative purposes only and does not constitute legal advice, opinion or otherwise.