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company (public compnay (No limit to the number of shareholders, Can offer…
company
public compnay
No limit to the number of shareholders
Can offer shares to the general public
Rigorously regulated
Shareholders elect directors to manage the company
Private company
Ownership restricted to no more than 50 non-employee shareholders
Restricted ability to raise funds from general public
Less regulated with fewer reporting requirements
Owners and managers responsible for day to day management of the company
small company(达到下面至少两个条件)
Its consolidated gross assets at the end of the financial year are less than $12.5 million
It employs fewer than 50 employees at the end of the financial year
It has consolidated gross operating revenue of less than $25 million
corporate governance
The term is used to describe the ways in which companies are directed and controlled
a framework of rules to help monitor and control the behaviour of directors
disclosure
accountability
fairness
The advantages and disadvantage
advantage
the separation of ownership and management, and the existence of a specialist management team
the perpetual existence of the entity, ensuring the stability of operations and long-term planning
the existence of a separate legal entity, which gives the entity operational and financial freedom
the limited liability for the owners (shareholders), which removes significant barriers to investment
greater access to ownership funding, enhancing the business’s ability to operate and expand
potentially greater access to debt funding
potential taxation advantages, given that the company tax rate is less than the maximum personal taxation rate (at the time of writing the company tax rate was at 30% compared with a maximum personal tax rate of 45%), and
potential increases in share values where shares are listed on the stock exchange
Potential disadvantages
more expensive to establish
more extensive regulatory requirements
less management flexibility
greater scrutiny by analysts and other special interest groups
potential taxation disadvantages as tax is paid at 30% on all profit (from the first $1)
potential loss of control by the original owners
greater pressure to perform over the short term by external (non-management) investors, and