• 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...

Introduction

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.

Middle

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.

Conclusion

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. Ownership of J.Sainsburys J.Sainsburys is a public limited company.

    Gary Hughes joined Emap in October 2000. Prior to this he was group finance director of SMG plc, deputy finance director of Forte plc and held a number of senior management positions with Guinness plc. Age 42. 2Ownership of J.Sainsbury's J.Sainsbury's is a public limited company. A public limited company must also consist of 2 or more directors of the company.

  1. Introduction to J Sainsbury plc

    (Source: www.j-sainsbury.co.uk) This suggests that Sainsbury's have gained enormous amounts of profit and is now reinvesting customer offers. This enables Sainsbury's to increase sales in order to improve their products and services by requiring to succeed financial data information. Sainsbury's also organise an annual general meeting (AGM)

  2. Introduction to incorporation.

    bankruptcy or insanity of a member will not result in its being wound up. 3. History 4. Types of Company A company can be formed in a number of ways: (a) By Royal Charter (Chartered Companies) Formed by grant of a charter by the Crown.

  1. Advantages and disadvantages of a public limited company

    Apart from the legal requirements the formation of a public limited company is a very expensive process compared to a sole trader or partnership and requires a great deal of documentation. The company also needs to have at least �50,000 of share available before it can become a PLC.

  2. Forms of Company

    An exempt private company need not submit its balance sheet and profit and loss account with its annual return, and it may make loans to directors and companies in which the directors own interests. Company Limited by Guarantee In a company limited by guarantee, the liability of members is limited

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

    helping Tesco?s to achieve their aims and objectives ? I shall rank which activity is considered to be the most influential factor. I will then write an evaluation where I will make a judgement of how marketing activities, enterprise skills and teams have contributed to Tesco?s success.

  2. Legal influences and their impact on Sainsburys Plc

    This is because of the lack of customer interest. However, over time, customer interest may have increased. This is because customer-buying attitudes usually change over time. The Act has a very minimal impact on Sainsbury's, as if they were to open on Christmas Day; they wouldn't receive the profit that they want.

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