1 Mode of forming incorporated company.E+W+S
(1)Any two or more persons associated for a lawful purpose may, by subscribing their names to a memorandum of association and otherwise complying with the requirements of this Act in respect of registration, form an incorporated company, with or without limited liability.
(2)A company so formed may be either—
(a)a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them (“a company limited by shares”);
(b)a company having the liability of its members limited by the memorandum to such amount as the members may respectively thereby undertake to contribute to the assets of the company in the event of its being wound up (“a company limited by guarantee”); or
(c)a company not having any limit on the liability of its members (“an unlimited company”).
(3)A “public company” is a company limited by shares or limited by guarantee and having a share capital, being a company—
(a)the memorandum of which states that it is to be a public company, and
(b)in relation to which the provisions of this Act or the former Companies Acts as to the registration or re-registration of a company as a public company have been complied with on or after 22nd December 1980;
and a “private company” is a company that is not a public company.
[F1(3A)Notwithstanding subsection (1), one person may, for a lawful purpose, by subscribing his name to a memorandum of association and otherwise complying with the requirements of this Act in respect of registration, form an incorporated company being a private company limited by shares or by guarantee.]
(4)With effect from 22nd December 1980, a company cannot be formed as, or become, a company limited by guarantee with a share capital.
Textual Amendments
F1S. 1(3A) inserted (15.7.1992) by S.I. 1992/1699, reg. 2, Sch. para.1.