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What are the Advantage of limited liability
Advantage of limited liability, though, imposes certain obligations on such companies. To start up a limited company, documents of incorporation should be prepared that set out, among other things, objectives of the business. Moreover, a framework of regulations exists which places obligations on limited companies concerning the way in which they conduct their affairs. Part of this regulatory framework needs annual financial reports to be made available to owners and lenders and typically an annual general meeting of the owners has to be held to approve reports. Furthermore, a copy of the annual financial reports should be lodged with Registrar of Companies for public inspection.
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