Lesson Notes By Weeks and Term - Senior Secondary School 2

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  4. Limited Liability Company II

Term: 1st Term

Week: 5

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:    Commerce

Topic:-      Limited Liability Company II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Outline the characteristics of Limited Liability Company
  2. State and explain the types and the features of each type of Limited Liability Company

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on Limited Liability company

Students pay attention

STEP 2

EXPLANATION

She states the characteristics of Limited Liability Company

Students pay attention and participates

STEP 3

DEMONSTRATION

She states and explains the types and the features of each type of Limited Liability Company

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

CHARACTERISTICS OF LIMITED LIABILITY COMPANY

  1. Its ownership is separate from the management
  2. They are required by the law to prepare their annual accounts and to be audited
  3. They must be registered under the Companies and Allied matters act(1990)
  4. It enjoys continual succession as the death of its shareholder will not affect its existence
  5. They are separate legal entity from the owners/stakeholders
  6. The law requires the companies to engage in specified businesses as states in the clause in the Memorandum of Association

 
TYPES OF LIMITED LIABILTY COMPANIES

  1. PRIVATE LIMITED LIABILIES COMPANY

A private company is formed by an association of specific number of people. It is defined by section 22 of CAMA 1990 as a company, which by its Articles limits the number of its members to fifty and restricts the right to transfer its shares.

 FEATURES OF PRIVATE COMPANY

  1. It must be stated in its memorandum to be a private company.
  2. Restricts the transfers of its shares.
  3. Two to fifty people are required to set it up.
  4. It prohibits any invitation to the public to subscribe to its shares.
  5. Appointment of directors may be done in a simple way.
  6. Its shares are not quoted on the stock exchange market.

 

  1. PUBLIC LIMITED LIABILITY COMPANY:

This is any other company that does not qualify under the private company. Sections of CAMA defined it ‘as a company which allows the public to subscribe to its shares and whose shares are transferable.  

FEATURES OF A PUBLIC COMPANY

  1. The word “public” must be stated in the memorandum.
  2. Does not restrict the right to transfer its shares.
  3. It must be formed by at least seven people but no limit to number of shareholders.
  4. It can place invitation to the public to subscribe for any shares of the company.
  5. It must publish its annual accounts.
  6. Its shares are quoted on the stock market.

 

EVALUATION:   1. State the characteristics of Limited Liability Company

  1. State and explain the types and the features of each type of Limited Liability Company

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively