PUBLIC COMPANIES (UNLISTED)

Question 1

What are the requirements for a Public Company limited by shares (plc)?

Answer 1

• Minimum share capital requirement of £50,000 (a quarter needs to paid up)
• Requires a trading certificate before it can trade
• Needs a minimum of 2 directors
• Must have a qualified company secretary
• Required to have AGM
• Limited by shares - general public can be invited to subscribe for share (if listed)
• Very onerous rules as public money is involved

Question 2

Why would you publicly list a company?

Answer 2

• Raise greater funds by offering shares to the public at large
• the company does not have to be listed
• The company isn’t listed - only its shares
• Commercial investors want to deal freely in their investments - and a stock exchange listing allows this

Question 3

What does a listed company mean?

Answer 3

• Can only be a public company
• Admitted to a regulated investment exchange such as the London Stock Exchange
• Shares are on the stock exchange (not the company)