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    nev
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    Can some explain what the difference is between

    Proprietary Limited (Pty Ltd)
    Unlimited Proprietary (Pty)
    Limited (Ltd)
    No Liability (NL)

    #1027313
    Solo Lawyer
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    Dear Nev

    A “Pty Ltd” is a private company. This type of company has the following characteristics (1) limited by shares (2) has no more than 50 non-employee members and (3) cannot ask the general public for money. The liability of shareholders for the company’s debts is limited to the paid or unpaid value of the shares which they own on the company.

    An “Unlimited Proprietary” company is company where there is no limit placed on the shareholders individual liability to repay the debts of the company. As you can imagine these types of companies are very rare.

    A “Ltd” company is a public company. They are usually larger entities. The distinguishing features of public companies are (1) they must have at least three directors, (2) they are permitted to seek capital from the general public and (3) they have the option of listing on the stock exchange.

    Finally an “no liability” company is a company where the shareholders are not liable for any unpaid calls on their shares. In other words, if a shareholder agrees to buy $100 worth of shares but only pays $50, they cannot be required to pay the remaining $50 in the event the company goes broke. The only companies which can be no-liability companies are mining companies.

    Bye

    Michael Terceiro
    Solo Lawyer
    http://www.terceiro.com.au

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