Features
v Must
use the word “Public Limited Company” or “PLC” after its name
v Can
invite the general public to buy its shares and debentures
v Can
transfer its shares freely
v Must
have a minimum of two shareholders
v Must
have at least two directors
v Must
have a trading certificate to commence trading
Advantages
v Shareholders
have limited liability
v Large
amount of capital is possible
v It
can invite the general public to buy its shares and debentures
v Shares
can be transferred freely
v Death
of a shareholder does not affect the life of the company
Disadvantages
v It
is difficult to manage the larger PLCs
v Formation
is complicated and costly
v Annual
accounts must be published. There can be little secrecy and privacy
v It
must have a minimum of two directors
v Shareholders
have a little control over the management
v It
has to comply with many government rules and regulations
Differences
between Public Limited Companies and Private Limited Companies
Private
Limited Companies
|
Public Limited
Companies
|
v It must use the word ‘Ltd’ after its name
v It can have a minimum of one director
v It can not transfer its shares freely
v It can not invite the general public to buy its
shares
v Need not to have a trading certificate
v Relatively less formalities
v Need not to publish its annual accounts
|
v It must use the word ‘Plc’ after its name
v It must have a minimum of two directors
v It can transfer its shares freely
v It can invite the general public to buy its
shares
v It must have Trading Certificate
v More formalities
v Must publish its annual accounts
|
Difference between Public Limited Companies and Partnerships
Public Limited
Companies
|
Partnerships
|
v Shareholders have limited liability
v There is no limit on the maximum number of
shareholders
v Companies are regulated by the Companies Act of
1980
v It is managed by the board of directors
v Companies have a separate legal existence
v A large amount of capital is possible
v A Plc must be incorporated
|
v Ordinary partners have unlimited liability
v The maximum number of partners is 20. Service
sector is exceptional.
v Partnerships are regulated by the UK Partnership
Act of 1890
v It is managed by partners themselves
v Partnerships do not have a separate legal entity
v Relatively less capital can be raised
v It is not required to incorporate the firm
|