Public Limited Company (PLC)
By Mahmood Reza
"A PLC is a limited company which has sold shares
on the stock exchange to the public"
- Public liability 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.
- There is continuity even if any of the shareholders die.
- These businesses can raise large capital sums.
- The shares of the business are freely transferable providing more liquidity to its shareholders.
Disdvantages
- There are many legal formalities required from a public limited company which can be costly and time consuming.
- PLC's have to publish their accounts.
- The original owners may lose control of the Company.
