Public limited companies

• What is a public limited company commonly abbreviated to in the UK?

  PLC
• How does the abbreviation for public limited companies differ in other countries?

  It varies; for example, CCC in Wales
• What type of company is a public limited company?

  It is a type of limited company
• What is the minimum capital a public limited company must raise?

  £50,000
• How many directors must a public limited company have at minimum?

  Two directors
• What is the role of a company secretary in a public limited company?

  To ensure regulatory compliance
• What is the common transition for a private limited company to become a public limited company?

  Through a process known as flotation
• What is flotation also known as outside the UK?

  Going public
• Why do private limited companies typically seek to become public limited companies?

  To access a larger range of finance
• Who are the likely sources of finance for a public limited company?

  Pension funds, investment banks, high net worth individuals
• What is a significant drawback of becoming a public limited company compared to a private limited company?

  Loss of control over shareholders
• What does limited liability mean for shareholders in a public limited company?

  Shareholders are only liable for their investment
• How does the distribution of profits depend on finance in a public limited company?

  It depends on the ability to secure finance
• What are the pros and cons of becoming a public limited company?

  Pros:

  • Access to large amounts of finance
  • Ability to expand business operations

  
  

  Cons:

  • Loss of control over shareholders
  • Increased regulatory requirements