Professional Documents
Culture Documents
CH 26
CH 26
Chapter X
26
The Nature of Limited Companies
Chapter Title and their Capital
An
Introduction to
Financial
Accounting
9th edition
Incorporated/Bodies corporate -
Formed by either:
(1) Royal Charter (e.g. ICAEW);
(2) Specific Act of Parliament (e.g. the BBC);
(3) General Act of Parliament (e.g. Companies Act 2006
– most companies).
• Preference shares
• Debentures/loan stock
• No voting rights
Payable on Application 60
Payable on Allotment 30
1st Call 40
2nd Call 20
Issue price 150
• The owners’ liability is limited to the amount they paid for the
share.