Discuss the distinctive features of a public limited company?
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A public limited company is a legal designation of a limited liability company. This means that the public company grants limited liability to the owners and management. It offers shares to the public and has limited liability. The shares can be acquired by anyone though initial public offerings or through stock market trade. Such offerings are beneficial in raising capital for the company. The rules and regulations are most stringent as compared to the Private limited company. This is because the funds invested in the company also belong to the public.
Some of the distinctive features of a public limited company are:
The public limited company is preferred as it has a separate legal entity under the Companies Act, 2013. Such form of business has a wide legal capacity to own property and incur debts. This is because the member of the company, both shareholders and the directors, have no liability to the creditors of the company.
Shares offered by a public limited company are easily transferable to any other person, such that it merely requires filing and signing of share transfer form to transfer the shares.
A company by law is a juristic person such that it can acquire or own, enjoy or alienate, property in its own name. this makes sure that the shareholders cannot claim the property as long as the company is running operations.
Some of the distinctive features of a public limited company are:
The public limited company is preferred as it has a separate legal entity under the Companies Act, 2013. Such form of business has a wide legal capacity to own property and incur debts. This is because the member of the company, both shareholders and the directors, have no liability to the creditors of the company.
Shares offered by a public limited company are easily transferable to any other person, such that it merely requires filing and signing of share transfer form to transfer the shares.
A company by law is a juristic person such that it can acquire or own, enjoy or alienate, property in its own name. this makes sure that the shareholders cannot claim the property as long as the company is running operations.
Answered by
2
A public limited company is a legal designation of a limited liability company. This means that the public company grants limited liability to the owners and management. It offers shares to the public and has limited liability. The shares can be acquired by anyone though initial public offerings or through stock market trade. Such offerings are beneficial in raising capital for the company. The rules and regulations are most stringent as compared to the Private limited company. This is because the funds invested in the company also belong to the public.
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