WAEC Book Keeping 2023 Theory — Question 2

Model answer

1. Formation: A private limited liability company is established by a minimum of two people and a maximum of a fixed limit; a public limited liability company is established by a minimum of seven people, with no maximum. 2. Sale of shares: A private limited liability company cannot sell shares to the public; a public limited liability company can sell shares to the public. 3. Publishing accounts: A private limited liability company is not required by law to publish its accounts annually; a public limited liability company is required by law to publish its accounts annually. 4. Name: A private limited liability company has the word "Ltd" at the end of its name; a public limited liability company has the word "Plc" at the end of its name. (Other acceptable: a private company is not required to hold an AGM at a registered office, while a public company is; the age limits and minimum number of people required to act as directors differ between the two - 2+ for private, at least 2 for public at incorporation, with directors aged 18-70 for private and 21-70 for public.)