ACCA LW · Chapter 8 · Question 6 of 11
Which of the following is a key difference between a public and a private limited company under the Companies Act 2006?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Only a public company may offer its shares to the public
Explanation
Section 755 prohibits a private company from offering its securities to the public. Both public and private companies are separate legal persons, both can be limited, and both must have articles (if none are registered, the relevant model articles apply). A public company must also meet the authorised minimum share capital and obtain a trading certificate before doing business.
More Legal personality, company formation and constitution MCQs
- Q8Under s33 Companies Act 2006, the articles of association form a contract. Between whom does this contract operate?
- Q9A company wishes to alter its articles. Which of the following correctly states the law?
- Q10What is the position under s31 Companies Act 2006 regarding a company's objects?
- Q11What is the legal effect of the certificate of incorporation issued by the Registrar of Companies?
- Q1What principle was established by Salomon v A Salomon & Co Ltd?