The business environment Essay Example | Topics and Well Written Essays - 5000 words

The business environment - Essay Example Charities under this category One of the most frequently used route for running a non-for-profit business is to establish it as a company limited by guarantee as these companies will not have either shareholders or shares but is has members. Under this, members consent in the eve of liquidation or winding up, to guarantee a certain sum of money that may be needed to cater the demands of any creditors. Such amount of guarantee will be illustrated in the Memorandum of Association of such companies. Further, companies whether they are limited by guarantee or by shares have to adhere the requirements under the Companies Act of 2006 in UK. Charities under this category have to register their Memorandum and Articles with the Charity Commission at the time of incorporation (Bloomsbury 2013: 60). Nominet UK is an UK based company limited by guarantee, and it is carrying on UK domain registry business in UK. Its members cannot have the right participate in its profit, and anybody can become the member of Nominet UK and majority of its members are Internet service providers in UK (Lambert 2012:44). A private company limited by shares can be incorporated under the laws of Scotland, Wales and England.† Limited by shares â€Å"connotes that the capital of the company is contributed by the shareholders of the company, and creditors can have access to the shareholders’ share capital amount in the event of winding up only up to the amount invested by them in the share capital of the company. It connotes that shareholder’s personal assets cannot be attached by the creditors in the event of insolvency or winding up of the company. A limited company may be either private or public as the private limited company disclosure norms are less flexible than the public company. Due to this reason, a private company is not allowed to issue shares to the general public and hence, it is not entitled to be listed or traded on a