Characteristics of
Public Limited
Company
Public Limited Company
 Uses PLC after their name
 Shares are open for sale to the public
 Shares are traded on the stock
exchange
 PLC must have at least £50,000 of share
capital to start up
 Managers control how the company is
run
Example of PLC
Advantages of Limited
Companies

Limited Liability
 Encourage



investment from shareholders
Finance can be raised quickly from selling
shares
Usually bigger than partnerships and sole
traders, better reputation for borrowing
money
Continuity
Disadvantages of Limited
Companies


Main director is overruled by shareholders
Share prices might go down
 Investors

might stop giving you money
Information is open to the general public
 Costly
(£100,000 to produce an annual report
and accounts)


Lots of paperwork to be drawn up…
Shareholders have majority
votes….owners could be voted out!