What is the difference in a Public Company Limited by Shares & Limited by Guarantee?

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What is the difference in a Public Company Limited by Shares & Limited by Guarantee?

Public Limited by Shares:

A public Company Limited by Shares has a share capital. Unlike Pty Ltd companies they market their shares to the general public and also list their company on the stock exchange.

Minimum Requirements:

-       Must have 3 directors, 2 must reside in Australia

-       Must have 1 secretary that resides in Australia

-       Must have 1 shareholder to hold shares in the company

 

Public Limited by Guarantee:

This is does not have share capital. Members are not required to contribute upfront or while the company is operating. If the company is wound up or unable to pay up a specified amount known as the Guarantee Amount will be used. The Guarantee amount gets put into the business straight up. This money will be used if the members are unable to pay debts & the company gets wound up.

Minimum Requirements:

-       Must have 3 directors, 2 must reside in Australia

-       Must have 1 secretary that resides in Australia

-       Must have 1 shareholder to hold shares in the company
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Mirko, Alum

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Posted 4 years ago

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