How Do You Spell COMPANY LIMITED BY SHARES?

Pronunciation: [kˈʌmpəni lˈɪmɪtɪd ba͡ɪ ʃˈe͡əz] (IPA)

"Company limited by shares" is a commonly used term in the business world. The spelling of this phrase can be explained through its phonetic transcription: /ˈkʌmpəni ˈlɪmɪtɪd baɪ ʃɛəz/. The first part, "company", is pronounced with the stress on the first syllable, followed by "limited" with stress on the second syllable. "By" is pronounced with a long "i" sound, and then "shares" with a final stress on the second syllable. This term is used to describe a type of company structure where the ownership is split among shareholders.

Meaning and Definition
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COMPANY LIMITED BY SHARES Meaning and Definition

  1. A company limited by shares, also referred to as a limited company, is a legal structure common in many jurisdictions, including the United Kingdom, Australia, and some other countries. This type of company is designed to enable individuals or entities to operate as a separate legal entity from its owners, commonly known as shareholders or members.

    In a company limited by shares, the ownership is divided into shares, and the liability of each shareholder is defined by the amount of shares they hold. The company's shareholders cannot be held personally liable for the company's debts or obligations beyond the value of their shares, which grants them limited liability protection. This means that if the company were to face financial difficulties or be subject to legal actions, the shareholders' personal assets would generally not be at risk.

    This type of company structure also allows for the sale or transfer of shares, providing a potential avenue for investors to buy or sell their ownership interest in the company. Additionally, a company limited by shares typically has a distinct legal personality, meaning it can enter into contracts, own property, and sue or be sued in its own name.

    Overall, a company limited by shares offers a clear separation between the company and its shareholders, limiting the personal liability of the shareholders while providing an effective and flexible structure for ownership, investment, and business activities.