Types of company

Which of the following are characteristics of a public company in Bhutan?

• Authorized to offer shares to the public

• Authorized to offer shares to the public

• Must have a company secretary

• Limited to one member only

A private company in Bhutan must meet which of the following requirements?

• Must have at least two directors

• Can offer shares to the public

• Cannot offer shares to the public

• May have a nominee in case of death of the sole subscriber

Which of the following correctly describe a limited company?

• Member liability is limited to unpaid share capital

• Can be limited by guarantee or shares

• Member liability is unlimited

• Not permitted in Bhutan

Which are true about unlimited companies?

• Members’ personal assets may be seized on winding up

• Member liability is limited by shares

• Not very common

• Registered under special government charter

Government companies in Bhutan must:

• Be incorporated as public companies

• Have more than 50% capital held by the government

• Be private companies

• Include subsidiaries of government companies

What is true of a holding company in Bhutan?

• It controls the composition of the board of another company

• It holds more than 50% of another company’s equity capital

• It must be incorporated outside Bhutan

• It can’t own subsidiaries

A subsidiary company may be identified if:

• Another company controls the board appointments

• Another company owns more than 50% of equity capital

• It operates independently of all other companies

• It is formed under a special Act of Parliament

Which are statutory companies?

• Incorporated under a special Act of Parliament

• Registered under the Companies Act

• Established by government legislation

• Must be listed on RSEBL

A foreign company in Bhutan is:

• Incorporated outside Bhutan

• Recognized as a body corporate

• Registered under Bhutan’s CA 2016

• Always a subsidiary of a local company

Which companies are listed companies?

• Those registered with RSEBL

• Private companies

• Public companies that offer shares on the stock exchange

• Sole proprietorships