A private limited company (Pvt. Ltd.), is an organisation that gives little legal; or liability protection to its shareholders. However, it has particular constraints on the proprietorship. These restrictions can be seen in detail in the company’s regulations or bylaws; which in turn prevents any attempts of hostile takeovers. The major restrictions are as follows:

  * Shareholders are prevented from transferring or selling shares; without given fellow shareholders first refusal.
  * Shareholders are not permitted to offer their shares to the general public, before the stock exchange.
  * The amount of shareholders cannot surpass a fixed number (typically fifty).


A Public Limited Company (or PLC), is an organisation which offers shares to the general company; however it has little liability. Stock of a public limited company can be attained by almost anyone; however they run the risk of potentially losing those shares down the line. This legal form is commonly found on the United Kingdom. To form such a company, a minimum of two people are required. These types of company’s offers limited liability to their management and proprietors. PLCs also permits a group to offer shares to investors; in turn raising much needed capital. Only PLCs are permitted to be listed on the Stock Exchange; and will in turn have the suffix “PLC”. For instance, British Petroleum has the suffix “BP PLC”. Further pre-requisites include:
  * The organisation has to be registered as a PLC
  * It must have at least £50,000 of share capital


A Voluntary organisation is one which occasionally relies on volunteers for their operations; and could employ non-paid staff. A volunteer organisation is regarded as:
Self-governance through a board of unpaid trustees.
  * Autonomy from the government
  * Non-profit organisation
  * Aid from philanthropy

Charitable Business Organisations

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