A distinguishing characteristic of a Public Limited Company is that it is managed by the shareholders as they have a stake in the company. The public limited company can raise money from the investors who biome their shareholders. Besides, it has different procedures for paying the taxes and reporting its financial statements. It must release a financial report for its investors, and make use of the services of a company secretary. Since the company is dependent on its investors for raising the capital, it must be listed on the stock-exchange and it must have a good share price value to succeed.

Public or Private Limited Company

The company could be a public or private depending upon the need and structure the company follows. In the public limited company, anyone can own the shares of the company while in the case of a private limited company, there have to be no more than 200 shareholders. For the company to become a public limited company, the 75$ shareholders must approve of the decision.

Benefits of a Public Limited Company

There are benefits of a public limited company as listed below-

• ● The company can raise the capital from shareholders
• ● The capital raised can be used to pay off debts
• ● The company has increased brand awareness
• ● The company is listed on stock-exchange so it has transparency