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Company Law

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The Companies Act 2006 ( CA2006) was implement on 1st of October 2009. The Act contains an extensive code of company for United Kingdom and altered most of the aspect of the law in relation to companies. Furthermore, plenty of provisions for public and private had been introduced. Moreover the long term of investment and shareholder engagement has been enhanced.
Sole Trader is owned or run a private corporation by one person who can control over decision making. Moreover the owner entitled to receive an all the profits. The drawbacks are unlimited risk for example the owner is entitled to pay off the debenture and damage of his business. It also has finance limited to resources of an individual.
Partnership is consists of two or more individual and equally liable for the debts incurred by the business. It can share expensive resources and risks together. Moreover, undertake heavy workload. There would be a problem if the partnership changes.
Limited Liability Partnership is a general partner which was introduced by The Limited Libility Partnership Act 2000. It is a separate legal personality and hybrid. Do not need to apply Partnership law. Partners are not directly responsible for debts.
Limited Liability Company is a separate legal entity personality with limited liability. Has potential to acess winder range of funding. The disadvantages are accounting arrangement made public. It may be an illusion for small company.
Company limited by Shares have ability to increase the fund. The shares may issue once the investor pay all the settlement at once. If the company makes a call, if the shareholder have partly of share is liable to pay the remaining of the issue price.
Company Limited by Guarantee is members have limited liability amount. If the company wound up the members are required to pay up the amount. The disadvantage is does not need any start-up

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