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Charter Corporations: Companies Formed by Letters Patent: Most Corporations by

This document summarizes different types of companies. It discusses companies formed by letters patent, charter corporations, and statutory companies. It notes that companies today are usually formed as limited companies (Ltd) or public limited companies (PLC). The owners of a company are referred to as members, who are shareholders in a company limited by shares. Some jurisdictions have created special offshore company types. Companies can also be public, with publicly traded shares, or private. A parent company is one that owns enough voting stock in another to control its management and operations.

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41 views2 pages

Charter Corporations: Companies Formed by Letters Patent: Most Corporations by

This document summarizes different types of companies. It discusses companies formed by letters patent, charter corporations, and statutory companies. It notes that companies today are usually formed as limited companies (Ltd) or public limited companies (PLC). The owners of a company are referred to as members, who are shareholders in a company limited by shares. Some jurisdictions have created special offshore company types. Companies can also be public, with publicly traded shares, or private. A parent company is one that owns enough voting stock in another to control its management and operations.

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ammu
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© © All Rights Reserved
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 Companies formed by letters patent: Most corporations by

letters patent are corporations sole and not companies as the term
is commonly understood today.
 Charter corporations: Before the passing of modern companies
legislation, these were the only types of companies. Now they are
relatively rare, except for very old companies that still survive (of
which there are still many, particularly many British banks), or
modern societies that fulfill a quasi-regulatory function (for
example, the Bank of England is a corporation formed by a modern
charter).
 Statutory companies: Relatively rare today, certain companies
have been formed by a private statute passed in the relevant
jurisdiction.
Note that "Ltd after the company's name signifies limited company,
and PLC (public limited company) indicates that its shares are widely
held."[14]
In legal parlance, the owners of a company are normally referred to as
the "members". In a company limited or unlimited by shares (formed
or incorporated with a share capital), this will be the shareholders. In
a company limited by guarantee, this will be the guarantors.
Some offshore jurisdictions have created special forms of offshore
company in a bid to attract business for their jurisdictions. Examples
include "segregated portfolio companies" and restricted purpose
companies.
There are, however, many, many sub-categories of types of company
that can be formed in various jurisdictions in the world.
Companies are also sometimes distinguished into public
companies and private companies for legal and regulatory purposes.
Public companies are companies whose shares can be publicly traded,
often (although not always) on a stock exchange which
imposes listing requirements/Listing Rules as to the issued shares, the
trading of shares and a future issue of shares to help bolster the
reputation of the exchange or particular market of exchange. Private
companies do not have publicly traded shares, and often contain
restrictions on transfers of shares. In some jurisdictions, private
companies have maximum numbers of shareholders.
A parent company is a company that owns enough voting stock in
another firm to control management and operations by influencing or
electing its board of directors; the second company being deemed as a
subsidiary of the parent company. The definition of a parent company
differs by jurisdiction, with the definition normally being defined by
way of laws dealing with companies in that jurisdiction.

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