A private limited company (Ltd.) under Dutch law is a legal person of which the registered capital is divided in
share
The portion of registered capital of a private or public limited company
» Meer over share
shares (
share
The portion of registered capital of a private or public limited company
» Meer over share
stocks). The shares (stocks) are not freely transferable but are registered on name. Besides, the liability of the shareholders of the company is limited to the value of their shares (stocks).
The limited company is private because the shares are not freely transferable. This is the main difference with a (Dutch) public limited company. In a public limited company (PLC, Inc.) the shares can be easily transferred as they do not have to be registered on name. All companies on
share
The portion of registered capital of a private or public limited company
» Meer over share
stock markets are therefore public limited companies.
In the Netherlands, the board of directors of a private limited company is required to keep a register of the shareholders and by how many shares (stocks) they participate in the capital.