PUBLIC LIMITED COMPANY Meaning and
Definition
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A public limited company, commonly abbreviated as PLC, refers to a legally recognized business entity that offers its shares to the general public for trading on a recognized stock exchange. It is a type of corporate structure that exists in countries like the United Kingdom, India, and others. A public limited company is often larger in size, scope, and shareholder base compared to other types of companies.
This corporate structure is characterized by limited liability, meaning the shareholders are only liable to the extent of their investment in the company. This feature protects their personal assets in the event of financial liabilities faced by the company. Additionally, a public limited company is typically governed by a board of directors who are elected by its shareholders. The board oversees the management and strategic decisions of the company.
To establish a public limited company, it is generally necessary to comply with legal requirements and regulations, including a minimum level of share capital. The shares of a public limited company can be freely traded among the public and institutional investors through the stock exchange. Public limited companies often raise capital by issuing shares or debentures to attract outside investments to support their operations and growth.
The ownership of a public limited company is divided among its shareholders, who possess limited rights and obligations depending on the number of shares they hold. These shareholders may receive dividends from the company's profits and are entitled to vote on key matters, such as electing directors or approving significant changes in the company's structure. Public limited companies can access a wider pool of capital, have higher public visibility, and may be subject to additional regulatory requirements compared to private limited companies.
Common Misspellings for PUBLIC LIMITED COMPANY
- oublic limited company
- lublic limited company
- -ublic limited company
- 0ublic limited company
- pyblic limited company
- phblic limited company
- pjblic limited company
- piblic limited company
- p8blic limited company
- p7blic limited company
- puvlic limited company
- punlic limited company
- puhlic limited company
- puglic limited company
- pubkic limited company
- pubpic limited company
- puboic limited company
- publuc limited company
- publjc limited company
- publkc limited company
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