• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Public limited company.

Extracts from this document...


In a public limited company only two people are needed and there's no upper limit. Every public limited company has a PLC at the end so that people don't confuse it for a private limited company. In a PLC the general public as well as other businesses and financial institution can buy shares from a PLC. Organizations rather than individuals own most of the shares in a PLC. In most of the countries the shares of the PLC are bought and sold through the Stock Exchange. For the public's benefits the share prices are printed in the newspaper so that the public can know the price of their shares. ...read more.


Setting up a PLC There are many rules in setting up a PLC then there are for a Private limited company (PVC). The procedures of starting a PLC are similar to a PVC. The company has to draw up a Memorandum of Association and Articles of Association and send these to the Registrar of Companies to apply for a certificate of Incorporation to show the company has registered. Before the certificate of Incorporation is issued, a public limited company needs to convince the registrar of companies that it has raised enough capital, at least 50,000 pounds, and if the company is going to sell shares on the stock exchange then it has to be approved by the stock exchange council. ...read more.


The public limited companies must appoint a Board of Directors to manage the company. They have to hold an Annual general meeting for the shareholders. They must have their accounts audited annually and a copy must be sent to the registrar of companies where it is available to public. Advantages * Shareholders have limited liability. * Easy to raise capital by selling shares. * It's easier to raise finance because the bank will be willing to lend money because it's a big company. * This makes it easier for a PLC to expand and grow. Disadvantages * Needs annual accounts and reports to be made public. * More expensive to setup. * It needs at least 50'000 pounds in capital. * The size of company can affect decision making. * There isn't much contact between shareholders and employees. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    Shareholders are often directors they need to have 50% shares to have a control whether singly or together in this business there is a minimum of one shareholder and one director and they have limited liability. 4. Public limited company: this kind of business sells shares to the public and anyone can buy the shares.

  2. Introduction to J Sainsbury plc

    & Dransfield, R. Advanced Business. Heinemann Educational Publishers. 2000) How Marketing and Sales help to achieve Sainsbury's Objectives The marketing and sales function at Sainsbury's have aimed to achieve its mission statement, by being the consumer's first choice for food on delivering high-quality products and providing a great service at a competitive cost through working

  1. Introduction to incorporation.

    A partnership (unless entered into for a fixed period) can be dissolved by any partner, and is automatically dissolved by the death or bankruptcy of a partner, unless the agreement provides otherwise. A company cannot normally be wound up on the will of a single member, and the death,

  2. Investigation into Cadbury's Plc.

    than a sole trader also a partner might specialise in one aspect of the business. The disadvantages are that they still have unlimited liability and the profits have to be shared between the partners. Other disadvantages would be that the decision-making would be a lot slower and they might not all agree on the same idea.

  1. Advantages and disadvantages of a public limited company

    A public limited company can also benefit from economies of scale because organisations such as Tesco's need to purchase large amounts of goods of the same type in order to meet the needs of their customers. This means they may be entitles to cheaper borrowing and bulk purchasing from their suppliers.

  2. Objectives of Cadbury Schweppes plc

    The growth objective is mainly a long term objective but I also think that the growth objective of CS can be a short term because short-term objectives will often differ from long-term objectives, especially if CS is experiencing poor financial performance at present.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Work level 3 is about running an operating unit. Requires management skills, including planning, target setting and reporting. Work level 4 is about supporting operating units and recommending strategic change. Requires good knowledge of the business, the skills to analyse information and to make decisions, and the ability to lead others.

  2. Legal influences and their impact on Sainsburys Plc

    Privacy and Electronic Communications Regulations 2003 The electronic sending of direct marketing messages by means such as telephone, fax, text message, and email are affected by these regulations. They also apply to the new more technological methods as they are being invented.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work