Public limited company examples

According to the Companies Act, 2013, ‘public company’ means a company which is not a private company. A public limited company is a joint stock company. The company can invite public for subscription of shares and debentures. The term public limited is added to its name at the time of incorporation.

In a PLC, shares are sold to the public on the stock market . People who own shares are called ‘shareholders’. They become part owners of the business and have a voice in how it operates. A chief executive officer (CEO) and board of directors manage and oversee the business’ activities.

• AstraZeneca Plc.
• Barclays Plc.
• Cineworld Group Plc.
• easyJet Plc.
• GlaxoSmithKline Plc.
• J Sainsbury Plc.
• Marks & Spencer Group Plc.
• Rolls-Royce Holdings Plc.

Limited by shares companies are set up by profit-making businesses, which means that surplus income is normally paid to shareholders in the form of dividends. Companies limited by guarantee are usually set up by non-profit businesses, so surplus income is generally used to promote and achieve their non-profit aims.

In companies, profit is distributed in the name of Dividends based on the percentage of Shares held by them. To share profits means sharing dividend. It will be decided based on the % of the shareholding each of you holds.

One of the main disadvantages of a private limited company is that it restricts the transfer ability of shares by its articles. In a private limited company the number of members in any case cannot exceed 200. Another disadvantage of private limited company is that it cannot issue prospectus to public.

Since it can sell its shares to the public and anyone is able to invest their money, the capital that can be raised is typically much larger than a private limited company. It’s also possible that having stock listed on an exchange could attract investment from hedge funds, mutual funds and other institutional traders.

What are the Disadvantages of a Public Company?

• Difficulty of formation: It is comparatively more difficult to set up a public company.
• Delay in decisions: ADVERTISEMENTS:
• Lack of secrecy:
• Legal formalities:
• Lack of motivation:
• Unhealthy speculation:

The main advantages of a being public limited company are: Better access to capital – i.e. raising share capital from existing and new investors. Liquidity – shareholders are able to buy and sell their shares (if they are quoted on a stock exchange. To give a company a more prestigious profile.

Features of Public Limited Company

• Easy Transferability.
• Perpetual Succession.
• Limited Liability.
• Paid-Up- Capital.
• Name.
• Directors.
• Prospectus.
• Borrowing capacity.

State ownership, also called government ownership and public ownership, is the ownership of an industry, asset, or enterprise by the state or a public body representing a community as opposed to an individual or private party. This form is often referred to as a state-owned enterprise.

The simplest definition of a public company is a corporation that is traded on the stock market. That is, the general public can buy and sell shares of the company on exchanges like the New York Stock Exchange (NYSE), the NASDAQ, or other stock-trading venues.

A PLC designates a company that has offered shares of stock to the general public. The buyers of those shares have limited liability. Meaning, they cannot be held responsible for any business losses in excess of the amount they paid for the shares.

Requirements for Registration of a Public Limited Company Minimum 7 shareholders are required to form a public limited company. Minimum of 3 directors is required to form a public limited company. A minimum share capital of Rs. An application is required to be made for the selection of the name of the company.

Examples of Publicly Traded Companies Shares of such companies are traded in the open market between retail investors and institutional investors. The examples of public traded companies are Procter and Gamble, Google, Apple, Tesla, etc.

The most common types of companies are:

• Royal Chartered Companies.
• Statutory Companies.
• Registered or Incorporated Companies.
• Companies Limited By Shares.
• Companies Limited By Guarantee.
• Unlimited Companies.
• Public Company (or Public Limited Company)
• Private Company (or Private Limited Company)

A public company is a company whose shares can be bought by the general public. Shares in a public company can be bought and sold on the stock exchange and so can be bought by the general public.

The three basic types of companies which may be registered under the Act are:

• Private Companies;
• Public Companies; and.
• One Person Company (to be formed as Private Limited).

Apple went public on December 12, 1980 at $22.00 per share. The stock has split five times since the IPO, so on a split-adjusted basis the IPO share price was $.