A private limited company, although having no limit to the number of share holders it can have, may only sell its shares privately and it is therefore restricted in the amount of capital it can raise. In contrast, the public limited company can invite the public to buy its shares and therefore has the greater potential to raise the most capital. Shareholders of both private and public companies are part owners of their companies, Limited companies having the advantage of having restricted liability for the debts for the company.Shareholders are not personally responsible for the company's debts, but directors may be asked to give personal guarantees of loans to the company.
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