What is a limited liability company?

Limited liability company, also referred to as a publicly held company, is a company created by two or more individuals that offer its shares for sale to the general public. Companies with limited liability, also known as PLC, are located in England and Ireland and other areas that follow English law. These companies maintain a limited obligation, which means that the company would fail, investors can only lose the amount of money they have paid for their shares and are not responsible for the debt of the whole society. This type of company may also have an unlimited number of investors, unlike privately held companies that do not have to. For example, only limited liability companies can be traded on the London Stock Exchange (LSE). Irish public limited liability companies are usually traded on the Irish stock exchange, although in some cases they can also be found on LSE. Public societies are usually regulated by a crippled instructions established by the government of the country in which they operate and are usualLE obliged to publish their financial records to check their investors. England and Ireland require at least two individuals to create such a society together, while India requires at least three. Each country also maintains its own standards for disqualification to become a company director, usually based on age and legal status.

Limited liability company must be registered with the House Company, which includes and stores information about any limited liability company in England, Ireland, Wales and Scotland. The House will then issue a certificate of establishing a public direction and requires an association memorandum. This memorandum usually description the purpose of the company and articles of the association that provides the rules and regulations of the company.

Limited liability companies are in the definition and operation similar to American corporation. Companies have a government withthe statutory states of statutory law, usually from the state in which it operates. The state considers them a separate entity from its shares holders and protects the holder of the shares from financial responsibility for the whole company. The company may be sued, but its shareholders must not be admitted to the court and responsible for any steps taken by the company. Similarly, if the corporations have to pay the settlement fee to those individuals who are fee against it, this fee can only come from the Company's assets and not from the personal assets invested by the Company's shareholder.