AJRG ELECTRICAL LIMITED

that the company is limited by shares

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You do the business, we’ll handle the money.

In the United Kingdom, every company must have formally appointed company officers. By statute, a private company must have at least one director and until April 2008 also had to have a secretary. The company’s articles of association may require more than one director. At least one director must be an individual, not another company.

within nine months of the end of the accounting reference period; or

if the accounting reference period is more than 12 months, within 22 months of the date of incorporation, or three months from the end of the accounting reference period, whichever is longer.

A company may change its accounting reference date by sending Form 225 to the Registrar.

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“Limited by shares” means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company. A shareholder’s personal assets are thus protected in the event of the company’s insolvency, but any money invested in the company may be lost.

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Share Capital

When a limited company is formed it must issue one or more subscriber shares to its initial members. It may increase capitalisation by issue of further shares. The issued share capital of the company is the total number of shares existing in the company multiplied by the nominal value of each share.

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A company incorporated in England and Wales can be created with any number of shares of any nominal value, expressed in any currency. For example, there may be 10,000 shares with a nominal value of 1p, or 100 shares of £1 each. In each case the share capital would be £100.