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Public limited company.

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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.

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