British stock corporation corresponding to the Czech limited liability company

The aim of this article is to describe the Private Company. It is a legal person that was formed by one or more persons for profitable or non-profitable objectives. Individual members are, in principle, not lia­ble to creditors of the company. A person may become a shareholder by subscribing the memorandum and ha­ving one or more shares allotted to him ar having sha­res transferred to him by an existing shareholder. The conception of Private Company has much less personal elements than Roman law countries conceptions whe­re "Gesellschaft mit beshränkter Haftung" served as a model. Private companics may have only one member nowadays. Currently there is no upper limit on the number of members of a Private Company in UK. There is no minimum share capital prescribed for pri­vate companies. Authorized capital empowers mana­gement to increase capital and thus the internal funds of company. The affairs of a company are managed and administered by its directors, acting either collec­tively, through decisions of the Board of Directors, or individually or jointly where specific authority has be­en delegated to one or more directors. The concept of a Supervisory board is unknown to UK Company law. The directors may exercise all the powers of the Com­pany through resolutions passed at duly convened board meetings. Every company must have a Secretary - the company's chief administrative officer. There is a wide range of statutory restrictions on directors. A compa­ny may be wound up by two methods: compulsory and voluntary liquidation.