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WEEK 3
TOPIC: Quoted and Unquoted Companies and Private and Public Companies
Private and public companies: (a) Private companies: (i) Definition (ii) Features (b) Public companies (i) Definition (ii) Features (c) Distinguish between private and public companies
CONTENT:
- Private companies
- Public companies
- Quoted Companies
- Unquoted Companies
Sub-topic 1. Private companies.
Definition.
Private company is defined by section 22 of CAMA 1990 as a company, which by its articles limits the number of its members to fifty and restricts the right to transfer its shares. Example of this is Obasanjo Farms Nig. Ltd.
Features
- It must be specifically stated in its memorandum of association that it is incorporated to be a private company.
- Private companies restrict the right to transfer shares to outsiders.
- The required membership is a minimum of two and a maximum of fifty.
- Its shares are not quoted on the stock exchange market.
- It does not invite the public to subscribe to its shares.
- The name of the company must end with “Limited”.
- It has a simple way of appointing its directors.
Sub-topic 2: Public companies
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