When commencing a business venture, it is necessary to consider
the most appropriate type of business structure to put in place.
Different business structures have different benefits and
disadvantages. This article looks at companies - how to set one up
and the pros and cons of a company structure.
Key Features
A company is a separate legal entity capable of holding assets
in its own name and liable for its own obligations. A company is
owned by shareholders. The liability of shareholders is usually
limited to the amount of their shareholding guarantee. This means
that shareholders can limit their personal liability and are not
generally liable for the debts of the company.
Directors manage the day to day business affairs of the company.
There are a number of duties and obligations for company directors
including an obligation that a director must act in the best
interests of the company.
