Public Limited Company: Definition, Features, Advantages and disadvantages
A public limited company is a voluntary group of members that is established and thus has a separate legal existence, as well as restricted liability for its members.
Its essential characteristics are as follows:
- the corporation has a separate legal existence from the persons who make it up.
- Its formation, operation, and termination are all strictly governed by rules, laws, and regulations.
- Its formation, operation, and termination are all strictly governed by rules, laws, and regulations.
- A business’s shares are freely transferable, and thus without the agreement of other shareholders or subsequent notice to the firm.
Advantages of Public Limited Company
A public limited company is a type of commercial organisation that acts as a legal entity independent from its owners. It is founded by shareholders and is owned by them.
So, here are some advantages of forming a public limited company:
- Led by Board of Directors
- Limited Liability
- Number of Members
- Transferable shares
- Life Span
- Financial Privacy
- Large Capital
Disadvantages of a Public Limited Company
A Public Limited Company (PLC) indicates that the company is divided into shares and traded “publicly” on any or all of the world’s stock markets.
So, here are some downsides of a public limited company:
- High Costs.
- Public Books.
- Greedy Shareholders.
- Takeover.
- Power.
- Slow Decisions.
How can we help?
Accotax Accountants in London will provide you with expert advice and practical assistance to support you as a director. We are also providing services for limited company accountants. Please call us on 0800 644 1258 email info@accotax.co.uk or call our senior consultant Sue directly on 0800 644 1258
