ALL SAINTS’ SECONDARY SCHOOL, OYIGBO.
SUBJECT: BUSINESS STUDIES
CLASS: JSS 1
TOPIC: LIMITED LIABILITY COMPANY
Meaning:
Limited Liability Company is a kind of business that is separate from its owners. It is regarded by law as a legal entity or a person, and as a person it can sue and be sued in a court of law. Limited Liability Company is also known as Joint Stock Company.
Features Of Limited Liability Company
1, Members enjoy limited liability.
2, Limited Liability Company is managed by elected members.
3, The Company must be registered with the registrar of companies known as Corporate Affairs Commission.
4, The income and expenditure are made public.
5, Limited Liability Company sells shares to the public.
OWNERSHIP
Shareholders are the owners but the affairs of the business are handled by Board of Directors.
MANAGEMENT
The company is managed by elected members called Board of Directors. The directors decide on how to run the business. Sometimes, shareholders may be called to meetings when certain issues are to be discussed, e.g. declaration of profit or presentation of account.
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