Hi - I am presently filling out a tender application and in the general company profile information section it asks if we are a limited company, which we are, then it says 'if limited, state amount'
What amount on are asking for?
As far as I know "Limited Liability" limites the liability of the shareholders to any monies owing on the issued shares in the company, i.e. any shares not already paid for.
Graham Could be !! but if I were a guessing man I don't think a €2 company would generally have a multi million net, worth possible but not likely
What do you think the question means after all that was the question
Graham Could be !! but if I were a guessing man I don't think a €2 company would generally have a multi million net, worth possible but not likely
What do you think the question means after all that was the question
I have a client with €2.54 in paid up share capital , authorised s/c €1M, turnover almost €2M p.a. Reserves of >€200,000. The issued s/cap on the balance sheet may be €2.54 but that means each share has a net worth of €200,000/€2.54. I can quote more such cases of companies with large reserves represented by small issued s/cap. Guy starts off with a €2 company and grows, does well, retained reserves build up, not unusual at all. ( well maybe less common in current climate but you get the drift )
As regards the OP, if it is a company limited by shares then I would expect issued and/or authorised to be required there. However if in doubt the OP should check with the tender source.
sorry, more than "possible but not likely to". It is not unusual at all for companies to start off with €2 or, in old times £2 (€2.54) in share capital paid up, one x share for each of the two shareholders ( or one share with single member companies ) . Those companies can, through bank borrowings or director loans get the finance to kick off and over years can ( and do often ) grow to substantial entities. Many family companies do not bother increasing paid up share capital as very not often needed ( unless by bank requirements for increased capitalisation ) . So it is more than possible. It is out there and I deal with quite a few.