Sunday, August 10, 2014

Public Limited company

Public Limited company

Limited companies which can sell share on the stock exchange are Public Limited companies. These companies usually write PLC after their names. Minimum value of shares to be issued (in UK) is £50,000.

Advantages

  • There is limited liability for the shareholders.
  • The business has separate legal entity. There is continuity even if any of the shareholders die.
  • These businesses can raise large capital sum as there is no limit to the number of shareholders.
  • The shares of the business are freely transferable providing more liquidity to its shareholders .

Disadvantages

  • There are lot of legal formalities required for forming a public limited company. It is costly and time consuming.
  • In order to protect the interest of the ordinary investor there are strict controls and regulations to comply. These companies have to publish their accounts.
  • The original owners may lose control.
  • Public Limited companies are huge in size and may face management problems such as slow decision making and industrial relations problems.
  • Public Limited Companies and Stock Exchange

    This short video gives an insight into the forming of a Public LImited Company and the process of listing it on the Stock Exchange.

1 comment:

  1. TODAY TESTIMONY ON HOW I GOT MY LOAN AMOUNT $800,000.00 DOLLARS FROM A RELIABLE AND TRUSTED LOAN COMPANY LAST WEEK Email for immediate response drbenjaminfinance@gmail.com

    Hello everyone, My name is Mrs. Carolin Glowski, I'm from Europe, am here to testify of how i got my loan from BENJAMIN LOAN FINANCE after i applied Two times from various loan lenders who claimed to be lenders right here this forum, i thought their lending where real and i applied but they never gave me loan until a friend of mine introduce me to {Dr. Benjamin Scarlet Owen} the C.E.O of BENJAMIN LOAN FINANCE who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met {Dr. Benjamin Scarlet Owen} who really helped me with my loan and changed my life for the better. I don't know if you are in need of an urgent loan also, So feel free to contact Dr. Benjamin Scarlet Owen on his email address drbenjaminfinance@gmail.com

    ReplyDelete