what is a Public Limited Company

what is a Public Limited Company

what is a Public Limited Company

Many people who are not sure about what is a Public Limited Company and what can be done with them, may get confused. There are many people who get confusing because of the phrase ‘limited company’ used in the statement ‘what is a Public Limited Company‘. If you think that it means the same thing as a private limited company, you are wrong. A Public Limited Company is a company where all shareholders are shareholders and there is no general meeting.

So what are the advantages of a limited company? They are much more stable than the normal companies because of the stability. If you own a share of such a company, then you are doing so as a shareholder. This company will have the reputation of being better than other companies because of the stability. The advantages of a company that is under a Public Limited Company Status are that they have higher profit margin compared to the companies that are generally run without any restriction. With the huge profits that the Public Limited Company has, they can invest these profits in building and expanding their business or in purchasing and maintaining assets. These assets can be anything like property, inventory, machines, trucks, vehicles, raw materials, etc.

The disadvantages of a Public Limited Company are also there but are less than the disadvantages of private limited companies. The Public Limited Company has less people working in it, which is a disadvantage. If the company fails to be productive, then the amount of money that the company spends on dividends goes down. The minimum shareholder is the only one that has the right to vote in the decisions of the company. This is very important because if there is no shareholder for a Public Limited Company, then the decisions can be changed without the consent of the shareholders.

 

What is Single member company                                                       what is a Private Limited Company


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