Question on: JAMB Commerce - 2012

The feature common to both public and private limited liability companies is their legal status as entities that can sue and be sued. * **A. both can sue and be sued:** This is correct. Both types of companies are separate legal entities and can take legal action or be subject to legal action. * **B. the minimum number of their shareholders is five:** This is incorrect. The minimum number of shareholders for a private limited company is typically two, while a public limited company usually requires a minimum of seven shareholders. * **C. the transfer of their shares is not restricted:** This is incorrect. The transfer of shares is restricted in private limited companies. * **D. their annual accounts are published for public use:** This is incorrect. While public limited companies are required to publish their annual accounts,