OK is an example of a Publice Limited Company. Image credit newsdzezimbabwe.co.uk

OK is an example of a Publice Limited Company. Image credit newsdzezimbabwe.co.uk

ZIMSEC O Level Business Studies Notes: The Features of a Public Limited Company

  • Is a limited liability company whose shares can be bought and sold publicly on the stock exchange.
  • The company is treated as a separate juristic person (legal entity) at law.
  • The number of shareholders is unlimited.
  • Its affairs are governed by the Memorandum and Articles of association.
  • In addition to being issued with a certificate of incorporation public limited companies need to conduct an Initial Public Offering (IPO)
  • after which they are issued with a certificate of trading once they are ready to trade.
  • They also have a higher minimum issued capital when compared to private limited companies.
  • Public limited companies are also required by law to hire external auditors at least once annually.
  • Shareholders can elect a Board of Directors during the Annual General Meeting (AGM) to operate the business on their behalf.
  • The name ends with the words Public Limited Company (PLC) or some other equivalent words.
  • It is registered under the Companies Act
  • Shareholders are free to sell their shares on the Stock Exchange

NB Visit this page to view the advantages and disadvantages of a Public Limited Company.

To access more topics go to the O Level Business Notes page.

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