Limited companies can be owned a single or multiple members. If a company is limited by guarantee, its members are called ‘guarantors’. On the flip side, members of a company limited by shares are called ‘shareholders’. Both guarantors and shareholders could be individual persons or corporate entities such as LLPs, trusts, other limited companies, etc.
Although guarantors and shareholders are known as partners or members, there is another term for the initial shareholders or guarantors of a company; ‘subscribers’.
To become a shareholder of any limited company, it is crucial to purchase at least one share of a company. Based on the total shares allotted, a company may have a single owner or multiple owners. To become a guarantor, it is necessary to offer an official ‘guarantee’ that assures your contribution of a specific amount toward the debts of the company in the event the business is unable to fulfil its financial obligations.
When it comes to the nominal value of a limited company, it’s only £1 for each guarantee or share. It’s called ‘limited liability’ and is among the biggest benefits of establishing a limited firm, instead of running your business as an independent trader.
Is there any limit with regard to the people who can own a company?
Private companies need to have one or more owners. This means that a single corporate body or individual can act as the owner. Typically, there is not any limitation in regard to how many owners a business may have during or post establishment except where specific clauses are added in the model articles.
Can company owners also act as directors?
A company owner can certainly act as a director of the same company. Nonetheless, it’s not a legal obligation. It’s totally possible for company owners to hire other people to perform the duties of a director and manage the business for them.
What are some of the key responsibilities that company owners are required to fulfil?
Some of the key responsibilities of company owners include making critical business decisions during challenging periods which are beyond company directors’ powers. These may include:
- selecting and removing company directors
- selecting what type of powers should be granted to the company directors
- modifying the share portion of the business
- modifying the model articles of the company
More often than not, company directors can also make other business decisions, nonetheless, it is important to consult the model articles (along with shareholders’ agreement, if your business has one) to verify the decision-making procedures and guidelines of your company.
Understanding the financial accountability of owners
Limited company owners should provide financial support to the company whenever it gets into economic trouble. However, their accountability for company debts is restricted to a specific amount of money, i.e., the nominal price of shares that they own.
For guarantors, their liability is restricted to the value of their monetary guarantees. It is also normally set at £1, but company members can set this value at their preferred sum.
Both guarantors and shareholders need to contribute these agreed capitals as soon as they join the business or when the money is requested from them to pay the company debts.
In order to locate a limited company owner, simply visit the official site of Companies House and check the public register of the given company. The register includes all of the details associated with limited companies in the United Kingdom. These include company directors and members’ names. You can easily access these details free of charge through the registrar service.