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incorporation - Coggle Diagram
incorporation
disadvantages
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if company suffers loss a shareholder is unable to sue personally prudential assurance v newman industries as sharehodler doesn't suffer personal loss
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different company's
ltd
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if don't have 75% of issued shares loss ability to unitlaterally pass special resolution and if more than 50% can't unilaterally pass ordinary resolution
pre-eexemption clauses would require any additional shares offered to remaining mebmers of company - publican't can't be invited to subscribe
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