Public Limited Company (PLC)

"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.
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