a vehicle intended for use by a small number of people engaging in activities of a more private nature and is entitled to more privileges and exemptions than a public company
A proprietary (or private) company is limited to no more than 50 members and operates with restricted rights of transfer of shares. It can neither invite the general public to subscribe for its shares or debentures nor take deposits from the public. It is the most common form of company type.
A proprietary company is a company with less than fifty non-employee shareholders. Its ability to offer shares is limited. The transfer of ownership of shares is often restricted. Many small to medium sized enterprises are owned by proprietary company structures. Proprietary companies are often referred to as private companies. Proprietary companies have limited reporting and audit requirements to fulfil. Proprietary companies must change their registration status if they wish to have more than 50 non-employee shareholders.
A business which is owned by not less that two persons and not more than 50 persons and which restricts the right of the shareholders to transfer shares. Such a business is a separate legal entity and must use the words Proprietary Limited (Pty Ltd) after it name. rospectus Document issued by a company setting out the terms of its public issue of shares subject to the Corporations Law. The tough prospectus provisions of the Corporations Law mean that anyone involved in the promotion of the sale of shares to the public, the owners, the underwriters, the accountants or the lawyers, can be held legally liable if the prospectus contains misleading information or there is an omission of material information. Overall, this makes this a very expensive process. roxy ritten authorisation given by a shareholder to another person to vote on his behalf at a company meeting. Rate of stock turnover (stock turn) The ratio of cost of goods sold over average stock (at cost). This indicates how many times, on average, the entire inventory (stock) was sold and replaced during the year.
a company owned by its shareholders.
A proprietary company is a form of corporation in Australia that is limited by shares. However unlike a public company there are, depending on jurisdiction, restrictions on what they can and cannot do.