2.

2 Company
2.2.1 Limited Company 2.2.1 2.2.2 Public Company 2.2.2

2.2.1

Section 1096/
A limited company is that kind of which is formed with a Capital

divided into equal shares, and the liability of the shareholders is limited to the amount, if any unpaid on the shared respectively held by them

Limited Company = Limited Liability (only)

The only kind of shares that can be a capital divined

is only limited Liability Shares The investor who called as Share holders will limit their legal liability into the fix amount that they paid or promise to pay (booking) and this legal liability is outside of the companys (legal) liability. Paid up shares /
Still using the concept of shares which is not only

money but need to value the shares

Section 1097 /
Any three or more

persons may , by subscribing their names to a memorandum and otherwise complying with the provisions of this Code, promote and form a limited company.

Promoter =

ABC MICE Co., Ltd.

A can still hold the shares but need to value the knowledge of service and register it to the memorandum of Association . memorandum of Association = ABC MICE Co., Ltd. also need to register at Phuket Provincial Partnership and Company Registration Office =
Department of Business Development , Ministry of Commerce

( )

ABC MICE Co., Ltd.

A has one shares on

Service need to be valued

B has one shares with Money C has one shares with

A is an limited share holder B is an limited share holder

(few) Money and want to limit liability on certain amount of his money

C is an limited share holder

Section 1098 Memorandum of Association.

The memorandum must contain the following particulars: (1) The name of the proposed company, which must always end with the word limited. (2) The part of the Kingdom is which registered office of the company shall be situated. (3) The objects of the company, (4) A declaration that the liability of the shareholders shall be limited. (5) The amount of the share capital with the company proposes to be registered, and the divisions thereof into shares of a fixed amount. (6) The names , addresses, occupations and signatures of the promoters, and the number of shares subscribed by each of them.

() () () () () ()

ABC MICE Co., Ltd.

A,B,C have only limited liability shares for the

company. IF the company name ABC MICE Co., Ltd. Create losses for the business then A,B,C only liable for the amount of the shares. ABC MICE Co., Ltd. - the Juristic Person in the form of Company and most popular

2.2.2

Public Company
Public Company is the company that start with minimum

15 persons to promote the company ( Limited Company minimum 3 persons). sell their shares in the stock exchange market () and only create by The Public Company Act B.E. 2535
Most difference issue from Limited Company on the issues of

Selling shares to the public Only Public company can sell their shares to the public (people) , Limited Company can not.
Some specific business is required to register as a public

company such as Insurance Company to conduct an insurance business.

Legal Vocabulary
Limited Company = a business organization that the share

holders will limit their legal liability into the paid up shares. Public (Limited) Company = a Limited Company that sell the shares into the stock exchange market. Promoter = The person who book and subscribe the shares. Share holder = The investor inside the company. Memorandum of Association = a document that the promoters of the company must prepare to register a company. Paid up shares = The shares that already paid in full amount.