A public limited company (PLC) is a type of company that offers its shares to the general public and is listed on a stock exchange, allowing anyone to buy and sell its shares freely. It is a separate legal entity owned by shareholders and managed by directors, with limited liability protection for its members, meaning shareholders are only liable up to the amount they invested in shares
. Key characteristics of a public limited company include:
- Ability to sell shares to the public via a stock exchange.
- Must have a minimum share capital (e.g., £50,000 in the UK) and meet certain regulatory requirements.
- Required to publish detailed financial reports and disclosures to provide transparency to investors.
- Must have at least two directors and a company secretary (in the UK).
- Shareholders have limited liability and are not personally responsible for company debts beyond their investment.
- The company name includes "PLC" or "public limited company" to indicate its status
PLCs are common among large, mature companies seeking to raise capital from the public. Examples include well-known UK firms like AstraZeneca Plc, Barclays Plc, and Tesco Plc
. The structure is similar to publicly traded corporations in the United States. In summary, a public limited company is a publicly traded company with limited liability, regulated transparency, and the ability to raise capital through public share offerings
