Why do some companies insist that suppliers are Ltd.

Mistral001

@Grumpy_chap.  Thanks for the diversion into the world of mega business anyway.

uknick

Grumpy_chap said:

uknick said:

Have you got the company registration number for GSK unlimited?  I ask because I have shares in GSK and would hate to find out I am liable for all their debts above my shareholding.

01047315
https://find-and-update.company-information.service.gov.uk/company/01047315

I suspect your shares are in GSK PLC 03888792
https://find-and-update.company-information.service.gov.uk/company/03888792

k12479 said:

@Grumpy_chap do you know why they keep this structure? Something to do with ensuring employees get paid even if the employing entity doesn't cover its costs, perhaps?

I believe it is to do with the potential medical negligence claims that could follow from the products and activities of the company.
GSK Services Unlimited is basically the majority of the global operating business. 
Any claim against them can claim against the full assets of GSK Worldwide, which is a lot of assets. 
One way or another, this risk has to be insured and if that was all met through insurance, the premium would be prohibitive (even for such a large organisation).  Giving the assets of the business as potential collateral avoids that.
There are some Ltd companies within the group, but these are really the consumer healthcare and nutrition products where the potential for excessive claims is far lower.
Here are all the companies in the GSK Group:
https://www.gsk.com/media/7475/gsk-group-company-names-and-addresses.pdf

I fear we are drifting off topic area of "Small Biz Money Saving"

We are drifting but, thanks Grumpy. Everyday is a school day when it comes to company structures. 

DullGreyGuy

Grumpy_chap said:

DullGreyGuy said:

Arguably its easier to judge if an incorporated body has the funds to pay up if they botch a job than a sole trader because in exchange for limiting liability their records become public (hence the company behind this site went from Limited to Unlimited as the profits were getting embarrassing for a consumer champion) 

That does not match my understanding of Unlimited company.
Unlimited company is still an incorporated body and still has the same level of reporting and public domain accounts, but has no limitation to the liability that can be pursued.  In the event of business insolvency, the debts would not die with the business but the shareholders remain liable for unlimited amounts ( a bit like a Lloyds Name ).
One of the largest Unlimited company businesses is GSK - GlaxoSmithKline Unlimited

They are still incorporate but dont have to publish records though they may choose to (Coutts for example still does)

Look at David Camerons company 10421190 which moved to an unlimited structure in 2020 and you'll see no accounts published for the period after 2019. Alternatively 07473219 which has never filed accounts since incorporation in 2010.

This was the whole deal with the creation of limited liability companies, in exchanging for limiting the liability of the shareholders the companies finances would be made public