This distributes the powers to more and more people which may lead to … In order to be eligible to run as a public company, it should obtain another document called a trading certificate. Members: In order for a company to be public , it should have a minimum of 7 members (maximum unlimited). Enjoy economies of scale. Each ownership type has its own advantages and disadvantages and a business should choose the one that best suits its needs. Advantages of a Public Limited Company. Disadvantages of being a Public Limited Company. There could be a possible loss of control, as people may find that shareholders own over 50% of the shares, entitling them to the ownership of the business. The working of the Public Company is subject to more strict compliances of the provision of the Companies Act 2013. This is also known as a divorce of control. Shareholders have limited liability. There are many public limited liability company advantages and disadvantages that you should be aware of before forming your public limited liability company (PLC). Shares can be freely transferred on the stock exchange. Distribution of powers; The shares of a public limited company can be bought by anyone, thereby increasing the number of members. Membership is open to the public since shares are sold and bought on the Zimbabwe Stock Exchange. Public companies must also comply with the rules of the Australian Stock Exchange. Public Company registration is a complex procedure as it requires proper documentation. They are separate legal entities. Meanwhile many companies limited by shares are formed as private companies, you may get to know through this article about the advantages and disadvantages of a public limited company. However, shares in a public company can be freely sold and traded to the general public and their shares can be listed on a stock exchange. More capital can be raised since there is no limited … This is called "limited liability." A Public Limited Company (PLC) means, first, that the firm is parceled out into shares and sold "publicly" on any or all the globe's stock exchanges. Public limited companies (PLCs) are similar to private limited companies, in the sense that they are legally distinct entities with their own assets, profits and liabilities. Advantages of a company include that: liability for shareholders is limited; it's easy to transfer ownership by selling shares to another party; shareholders (often family members) can be employed by the company; the company can trade anywhere in Australia ... it may choose to become a public limited company (PLC). Public limited company is the large scale business that consists of 3 directors and 7 shareholders. The PLC, also known as a publicly held company, can issue shares to the public. Advantages. Limited Liability. 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