BENEFITS AND DRAWBACKS OF A PLC

MARKET SHARE

KEY FACTS:

• They have 450,000 colleagues at year end
• They have over 6,800 shops around the world
• Are based in the UK,ROL,Central Europe and Asia
• It is 100 years old

What is a plc?
- A company whose securities are traded on a stock exchange and can be bought and sold by anyone.

How is a plc different to an Ltd?
-A limited company is a private company whose owners are legally responsible for its debts only to the extent of the money they invested. This makes the Company a separate entity.

BENEFITS OF A PLC

• Able to raise capital for expansion by selling additional shares
• Liquidity – shareholders are able to buy and sell their shares
• Have limited liability
• The increased capital allows company to grow and diversify.
• The status of company increased, banks more willing to lend.

DRAWBACKS OF A PLC

• Greater public scrutiny of the company's financial performance and actions

REQUIREMENTS FOR BECOMING A PLC

• The minimum number of shareholders must be two (a private limited company only needs one shareholder)
• Accounts must be filed within 6 months of the year end (the limit is 9 months for a private company)
• The minimum number of Directors is two (just one needed for a private company)