Dear Mr. Hung, Three days ago, you and your wife approached Legal Solutions LLP to inquire about several matters. I am writing this letter to you, on behalf of Legal Solutions LLP, to answer your questions. First, regarding whether your restaurant should be set up as a limited liability company or a private limited company: Limited liability company vs. Private Company Limited Company When deciding whether to form a private limited company or a private limited company, it is important to know how they compare to each other. Similarities Between Limited Liability Company and Limited Liability Company There are many similarities between limited liability company and limited liability company limited liability company. First, both organizations are separate legal entities from their owners. This means they have perpetual succession (i.e. they do not dissolve if their members or partners die), they can own assets in their own names, and they can sue and be sued. (EnterpriseOne, 2012) Secondly, both organizations have limited liability. Therefore, directors, members or partners of the organizations are not personally liable for the company's debts or losses beyond their original investment. This excludes cases where losses have been suffered due to a lack of due diligence on the part of a member or director. (EnterpriseOne, 2012) Advantages of a Limited Liability Company over a Private Limited Company The first advantage of a limited liability company over a limited liability company is the ability to easily withdraw profits from the company. In a limited company you can easily withdraw capital from the business, unless the company agreement provides otherwise, however, in a private document...... means of paper ......tion 157 of the Companies Act, Ong will be liable to the company for any profits made by him or for any damages suffered by the company. Therefore, Ong was ordered to pay the profits made and losses incurred by the appellant with interest due at the rate of 6% per annum and cost. Furthermore, because he failed to comply with the provisions of Section 156, he would be fined up to $5,000. In conclusion, it is important that directors always disclose their conflict of interest and obtain appropriate consent from the board of directors and shareholders before entering into a contract or executing a transaction on behalf of the company. It is also important that directors always act in good faith and in the best interests of the company. This is key to avoiding a potential breach of fiduciary duty. (Singapore Law Academy, 2005) (Lawnet, 2004)