Current Sources of Basic Legislation in the UK Case Study

Current Sources of Basic Legislation in the UK - Case Study Example A company is said to be a private limited liability company if it is incorporated under the laws of either of the following: Scotland, England, Republic of Ireland, and Wales. In addition its shares are strictly limited to a specific group of shareholders but not the general public, consequently cannot be put for trading on a commercial stock exchange.1 The fact that the company is limited by shares is an indication of the presence and ownership of company capital by shareholders who are equally bound by the company's liability to creditors and other third-party institutions and agents. Going by the conventional rules governing the issuance of shares, shareholders and their personal effects are legally insulated from confiscation during insolvency save the value of the premium paid and the nominal value of the shares owned and issued by the company. According to the laws of the United Kingdom, all private limited liability companies are mandated to bear the suffix "Limited" abbreviated as "Ltd." The Case of John and his Partners Suffice to begin this section with a definite reference to the new Company and Companies Act 2006, will serve as the main reference framework of this paper. According to the act which will become functional in the last quarter of this year.