Public companies otherwise referred to as public limited companies, are limited by shares and are incorporated under the companies that are offered to members of the public through the stock exchange. The company is owned by those who subscribed to the shares of the company. They are called shareholders or equity holders, a share is a unit of capital.
The acronym of public limited liability companies is “Plc”. They publish their account for public inspection at least once a year and the account will be audited and submitted to the registrar of companies for inspection. Public companies have perpetual succession.
Advantages of Public Limited Liability Company:
1. Public limited companies have a greater capital base and also their operations are more extensive than private limited companies.
2. Perpetual succession is one of their features. There is greater assurance of continuity for public limited liability companies.
3. They have a greater scope of operation.
4. There are greater opportunities for employment in public limited companies.
5. Shares of members can easily be transferred to whosoever desires it and it is done through the stock-brokers.
6. The ownership of the company is required by law to convene an annual general meeting (AGM) for shareholders, where audited reports and accounts of the business are presented, and dividends are declared as the case may be.
Disadvantages of Public Limited Liability Company:
1. Huge capital is required to establish a public Ltd company.
2. The actual owners are the founders but the law projects shareholders who invested in the company as legal owners.
3. There are lots of formalities required to establish.
4. There is much delay in making decisions.
5. To set up a limited liability company, a lot of intricacies are required.
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