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Business Analysis of Northumbrian Water

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Introduction

Business Analysis of Northumbrian Water Northumbrian water is a private limited company (Ltd). Limited companies are owned by their shareholders. Each shareholder has limited liability. The liability to pay company debts should the business fail is limited to the amount each shareholder invested. This gives people confidence to buy shares in the knowledge that their personal possessions are not at risk. Money raised from shares is known as permanent capital. A board of directors undertakes the day to day running of the company. Limited companies have a separate legal identity, this means the business exists separately from its owners. ...read more.

Middle

Suez also owns ONDEO which is a water company, Tractebal which is an energy company, S.I.T.A which is a waste services company and various communications companies. Benefits: * The sales of shares can raise capital * Owners have limited liability This means that their personal possessions are not at risk. * The company has a separate legal identity from its owners The company is seen as a person in law. Therefore, its owners cannot be sued * Owners can appoint directors on their record of achievement and business knowledge * Capital raised from shares never has to be re-paid. ...read more.

Conclusion

The Memorandum of Association governs the company's relationship with the outside world. It includes the company name, the address, what it will produce or what service it will offer, the statement of limited liability for the shareholders, the amount of capital to be raised by selling shares and the agreement of the founder members to form the limited company. The Articles of Association control the internal running of the company. This includes procedures for the general meeting of the shareholders, the obligations of the directors and the voting rights of the shareholders. Financial information must be published. * An annual general meeting of shareholders must be held each year. * Shares cannot be advertised on the stock exchange (unless the company grows large enough) ...read more.

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