Tamu Limau is a senior partner in a real estate business. He would like to know whether to continue the business as a partnership or convert...

      

Tamu Limau is a senior partner in a real estate business. He would like to know whether
to continue the business as a partnership or convert it into a private limited company.

Advise him on the advantages of a private limited company.

  

Answers


Maurice
(i) A private company has a wider capital base by reason of the wide spectrum of membership.

(ii) Shares or other interest in a private company are transferable.

(iii) A private company enjoys perpetual succession.

(iv) It has limited liability that is, members liability to contribute to the assets of the company is
limited by shares or guarantee.

(v) Has specialized or qualified management.

(vi) Can borrow by floating charge.

(vii) Has capacity to own or hold property and therefore can invest.
maurice.mutuku answered the question on April 30, 2018 at 13:41


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