Organizational Practices specific to Private/Public Companies

Statutory Declaration
Statutory declarations are commonly used to allow a person to declare something to be true for
the purposes of satisfying some legal requirement or regulation.

Certificate of Incorporation
This is a legal document relating to the formation of a company or corporation. It is a license to
form a corporation issued by state government. Its precise meaning depends upon the legal
system in which it is used.
Certificate of Trading
It is the certificate issued by the registrar of companies to the public limited company to grant
permission to commence its business.
The private limited company may begin trading after receiving the certificate of incorporation,
but the public limited company must issue a prospectus inviting the public to subscribe for shares
before a certificate of trading is issued.
Fin.

Extra notes on Cooperatives

Types of Cooperatives
1. Consumer 
2. Producer
3. Financial
4. Services 
5. Worker
For example, members of a credit union purchase shares in these entities in order to obtain loans
at low interest rates.
There are several types of cooperative, for example, Retail/Consumer cooperatives and Producer
cooperatives. Shares invested in a retail cooperative are used to buy goods in bulk at a very low
cost and then resold to members. Producer cooperatives may include a group of farmers who will
obtain raw material at a low cost.
Profits are distributed to members based on the amount of goods that they buy and not on the
amount of investment that they make in the business. At the annual general meeting,
shareholders elect their management committees from among their members and vote on
proposals put forward. Benefits of being a part of a cooperative are therefore obtaining goods
and services at low costs and a guaranteed market as members are also customers. A
disadvantage is that its management may be inexperienced as they are chosen from their
membership.

More Organizational Structures Explored

Multinationals

A multinational company is a company that has headquarters in a home country and operates
businesses in various host countries.  Examples of Multinational companies in the Caribbean are
Shell, Kentucky Fried chicken and Digicel.
Advantages
 They provide employment.
 They introduce advanced technology.
 Provide well needed goods and services.
Disadvantages
 Profits earned are repatriated to the main centre in their home country. 
 They may exploit the workers by paying low wages and having them work long hours.  
 They cause unemployment when they close down to take advantage of cheaper labour and
lower operational cost in another country.
Conglomerates
This is a group of unrelated companies (e.g. a restaurant, shoe store a travel agency etc,) under
one umbrella. A parent company owns a controlling stake in each company which conducts
business separately.
Advantages 
 The risk is spread over multiple businesses 
 Economies of scale 
 Easier to access financing due to asset base
Disadvantages
 Management can be difficult 
 Some businesses may increase the risk of the conglomerate