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Identity and Legalities

 

Carlo Santini set up “Carlo’s Vegetable and Fruit Juices” several years ago as a sole trader business.  The business produces organic vegetable and fruit juices.  These products are manufactured at a building located on a nearby business park. The juices are sold through the local charity shops in the town.  In recent years sales have grown and Carlo believes it is time to scale the business. Carlo thinks of his business as a kind of social enterprise and donates some of his profit to local charitable activities. Something he would like to continue.  With the expansion of the business he would be able to provide employment to people with disabilities.  Carlo also wants to enjoy any success from the business in the form of significant profit for himself.  He is considering changing the business legal format to that of a company.  He has had a number of conversations with his friends and agrees with them on the importance of the social economy.  His friends often talk about community interest companies by shares, and the need for local, family businesses.  However Carlo is considering forming a private limited company by shares, and possibly, if the business continues to grow, to convert the business to become a public limited company by shares listed on the stock market.  All in all Carlo has a number of options, depending on his yet not completely clear social and personal financial priorities.  As a business consultant to the social economy you have been asked to provide him with advice.

Assignment Tasks

Provide a 1500 word report which:

  • Compares and contrasts the legal structures of a private limited company by shares, a public limited company by shares listed on the stock market, and community interest company by shares. You should focus on the main features of these legal formats. (60%)
  • Discusses the advantages and disadvantages in adopting the legal structure of a public limited company by shares listed on the stock market for a social enterprise. (40%)

 

 
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