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PUBLIC LIMITED COMPANY

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Public Limited Company

What Is Public Limited Company?

A Public Limited company is a voluntary association of members which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited.

Advantages :

- There is limited liability for the shareholders.

- The business has separate legal entity. There is continuity even if any of the shareholders die.

- These businesses can raise large capital sum as there is no limit to the number of shareholders.

- The shares of the business are freely transferable providing more liquidity to its shareholders.


Disadvantage :

- There are lot of legal formalities required for forming a public limited company. It is costly and time consuming.

- In order to protect the interest of the ordinary investor there are strict controls and regulations to comply. These companies have to publish their accounts.

- The original owners may lose control.

- Public Limited companies are huge in size and may face management problems such as slow decision making and industrial relations problems.

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Public Limited Company

Public Limited Company

Large capital sum as there is no limit to the number of shareholders.