PRIVATE LIMITED LIABILITY COMPANIES
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A Private
Limited Liability Company is defined as one which by its articles restricts
the rights to transfer its shares, limits the number of its shareholders from
two to fifty, prohibits any invitation to the public to subscribe for its
shares, and the name of the private liability company must end with the
abbreviation of "Limited", e.g. Burberry Nigeria Limited, News watch
Nigeria Limited etc.
FEATURES/CHARACTERISTICS
OF PRIVATE LIMITED LIABILITY COMPANIES:
a. Ownership-
The business is owned by shareholders who may be between two and fifty persons
in number.
b. Objective- The major aim of Private
limited company is to make profit.
c. Source of Capital- The Capital
required to set up and run the business is provided by the shareholders in form
of shares. However, shares are not sold to the general public. They are sold
privately.
