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UK Companies Limited by Shares

 

Companies Limited by shares are by far, the commonest form of entity which can be incorporated in the UK.

This type of company is a standard profit making organisation which will carry out some trade or other commercial activity.

As the name suggests, a company limited by shares has one or more shareholders who own the business. They are thus entitled to any profits generated by the company, although all gains made by the enterprise are rarely distributed in full to the owners. It is often the case that a proportion is retained within the business for working capital and future growth purposes.

Most companies limited by shares use standard (or a slight variation to) Table A memorandum and articles of association. These documents set out a basic constitution for the business and generally permit it to carry out any legal activities in the furtherance of its profit objectives.

Thus, should a company wish to embark on a new kind of venture which, on incorporation, it had not envisaged that it would carry out; there would be no requirement for it to change its memorandum and articles of association. The Table A mem and arts would be broad enough to allow such activities.

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