Features of a Public Limited Company
A Public Limited Company is an organizational structure permitted to sell its shares to the general public. Unlike private limited companies, PLCs can raise capital by selling shares through stock exchanges. This capability is among the defining characteristics of PLCs and sets the stage for Public Limited Company’s features:
Minimum Share Capital: PLCs are required to have a minimum share capital, which varies by jurisdiction but generally signifies a substantial financial foundation.
Shareholder Diversity: There are no restrictions on the maximum number of shareholders, allowing PLCs to have a broad shareholder base.
Legal Entity: Like limited companies, PLCs are distinct legal entities, separate from their owners and management, which means they can enter into contracts, own property, and be liable for debts in their name.
Transparent Reporting: PLCs are subject to stringent reporting and disclosure requirements, ensuring a high level of transparency for investors and the public.
Board of Directors: PLCs are managed by a board of directors elected by the shareholders. This structure ensures professional management and aligns the company’s operations with the shareholders’ interests.
