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A feature common to public and private limited liability companies is that

A feature common to public and private limited liability companies is that
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Both can sue and be sued
  • B The minimum number of their shareholders is five
  • C The transfer of their shares is not restricted
  • D Their annual accounts are published for public use
Correct Answer: Option A
Explanation:
[b]Common Features of Private and Public Limited Companies[/b]

Both types of companies are registered with the words “Ltd” / “Sdn Bhd” under the Companies Act.
The shareholders and the company are separate entities, they can sue and be sued
All shareholders have limited liability.
A board of directors is elected by the shareholders. ...
Salaries managers are employed to manage the business.

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