A Public Limited Company, PLC, is such that it offers shares to the public. All public limited companies' names end in "PLC"
It is not completely mandatory for all Private Limited Companies, or PLCs, to roll out stock to the public, many do so. Some of these companies may be privately owned making use of PLC status for extra financing. These stocks are traded on London Stock Exchange or the Alternative Investments Market (AIM).
A public company can be formed if there a minimum of two directors and anyone can become the company director unless they are disqualified for the following reasons:
Some people who may not be UK nationals or European Union citizens may find their work restricted while they are in the UK, which may stop them from becoming a director.
The secretary, or a joint secretary, of a company, must be actively involved with the company directors and must have sufficient knowledge to participate and fulfil daily company operations.
Prospective Public Limited Companies must have minimum financial capital: Before starting the company, it should have allotted shares worth about £50,000. A quarter of them, £12,500, must be paid up. Along with the premium, each allotted share must be paid up to at least one-quarter of its nominal value.
in the case of "plc's" or their subsidiaries, the person is over 70 years of age or reaches 70 years of age while in office, unless they are appointed or re-appointed by resolution of the company in general meeting of which special notice has been given.
the person is an undischarged bankrupt, or disqualified by a Court from holding a directorship, unless given leave to act in respect of a particular company or companies.
in England and Wales (as of October 2008; Companies Act 2006) and in Scotland (Age of Legal Capacity (Scotland) Act 1991), the person is under 16 years old.
Held the office of secretary or assistant or deputy secretary on 22 December 1980, or
For at least three of the five years before their appointment, held the office of secretary of a non-private company or
Is a barrister, advocate or solicitor called or admitted in any part of the United Kingdom, or
Is a person who, by virtue of his or her previous experience or membership of another body, appears to the directors to be capable of discharging the functions of secretary, or
Is a member of any of the following bodies:
The Institute of Chartered Accountants in England and Wales,
The Institute of Chartered Accountants of Scotland,
The Institute of Chartered Accountants in Ireland,
The Institute of Chartered Secretaries and Administrators,
The Association of Chartered Certified Accountants,
The Chartered Institute of Management Accountants (formerly known as the Institute of Cost and Management Accountants), or
The Chartered Institute of Public Finance and Accountancy.
Bearer shares - Are a legal instrument denoting company ownership, and are usually in the form of share warrants. A share warrant is a document which states that the bearer of the warrant is entitled to the shares stated in it. If authorised by its articles, a company may convert any fully paid shares to "share warrants". These warrants are easily transferable without any need for a transfer document; that is, they can simply be passed from hand to hand. When share warrants are issued, the company must strike out the name of the shareholder from its register of members and state the date of issue of the warrant and the number of shares to which it relates. Subject to the articles, a share warrant can be surrendered for cancellation. If so, the holder is entitled to be re-entered into the register of members. Vouchers are usually issued with the share warrants in order that any dividends may be claimed.
Cumulative preference - These shares carry a right that, if the dividend cannot be paid in one year, it will be carried forward to successive years.
Ordinary - As the name suggests these are the ordinary shares of the company with no special rights or restrictions. They may be divided into classes of different value.
Preference - These shares normally carry a right that any annual dividends available for distribution will be paid preferentially on these shares before other classes.
Redeemable - These shares are issued with an agreement that the company will buy them back at the option of the company or the shareholder after a certain period, or on a fixed date. A company cannot have redeemable shares only.
A "plc" has access to capital markets and can offer its shares for sale to the public through a recognised stock exchange. It can also issue advertisements offering any of its securities for sale to the public. In contrast, a private company may not offer to the public any shares in itself.
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