WAEC Accounting 2016 Theory — Question 3

Model answer

(a) Features of Public Companies: i. Its shares can be subscribed by the public. ii. Its account must be made public annually/compulsorily. iii. There is no limitation to the number of shareholders. Features of Private Companies: i. Its shares cannot be subscribed by the public. ii. Its account is not compulsory to be published. iii. The name of the company ends with 'ltd'. (b) Rights available to an ordinary shareholder: i. He can transfer his shares to another person. ii. He can attend the Annual General Meeting and vote. iii. It is entitled to dividends.