Advantages and Disadvantages of public limited company
A public limited company is a form of a large business setup which provides the shares to the general public and has a limited liability.
There are a host of benefits in the formation of a public limited company (or PLC) which many businesses choose to incorporate instead of other forms such as the sole trader, limited liability partnership (LLP), partnership or company limited by guarantee. Meanwhile many companies limited by shares are formed as private companies, you may get to know through this article about the advantages and disadvantages of a public limited company.
In addition to setting up a new company, a proper assessment of the advantages and disadvantages of a public limited company will be required for an existing private limited company to get converted into a public limited company.
What is a public limited company?
A public limited company is a form of a large business setup which provides the shares to the general public and has a limited liability. The shares of a PLC can be acquired by anybody, either privately, during an initial public offering, or through stock market trading. In PLC, the company raises the capital by selling off the shares to the investors in order to infuse the capital into their business.
Closely regulated, such shares can be listed or unlisted on a stock exchange, with the company publishing their finances on a frequent basis which ensures the actual worth of the stock to the shareholders.