A company limited by shares can be either a public or a proprietary (private) company. A proprietary company can have no more than 50 non-employee shareholders. It has a restricted right to transfer shares and cannot undertake any commercial activities. The only exception is in limited circumstances that would require disclosure.. A company that is limited by shares is a type of company structure that allows its owners to limited liability. The legal responsibilities of a shareholder in a limited by shares company are different from those of shareholders in other types of companies. Shareholders benefit from having numerous benefits of setting up a company limited by shares.

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The term "limited by shares" refers to the shareholders' liability to the business's creditors for the fund that was invested originally. As per the Companies Act, 2013, if the company members' liability is limited by a sum not paid on shares they hold. This type of structure is known as a company limited by shares.. A limited company is a company 'limited by shares' or 'limited by guarantee'. Limited by shares. Limited by shares companies are usually businesses that make a profit. This means the company: