A “Public Limited Company” (PLC) is a type of business entity that is incorporated under the laws of a specific jurisdiction and whose shares are offered to the public. Public limited companies are often listed on a stock exchange, allowing their shares to be traded by the general public.

Here are some key features and characteristics of a public limited company:

1. Limited Liability:

   • Shareholders of a public limited company have limited liability, meaning their personal assets are generally protected in the event of the company’s financial liabilities.

2. Publicly Traded Shares:

   • One of the defining features of a public limited company is that its shares are listed and traded on a recognized stock exchange. This allows the company to raise capital by selling shares to the public.

3. Minimum Share Capital:

   • While there is no specific minimum share capital requirement for a public limited company in many jurisdictions, it often needs to have a substantial capital base to meet the public’s confidence.

4. Number of Shareholders:

   • A public limited company typically has a large number of shareholders, and there is no strict limit on the maximum number of shareholders. However, there is often a minimum requirement, such as having at least seven shareholders.

5. Minimum Directors:

   • There is usually a requirement for a minimum number of directors, commonly three, to manage the affairs of the company.

6. Regulatory Compliance:

   • Public limited companies are subject to stringent regulatory compliance and reporting requirements. They must adhere to rules set by regulatory bodies and stock exchanges, ensuring transparency and accountability.

7. Transferability of Shares:

   • Shares of a public limited company are freely transferable, allowing investors to buy and sell them on the open market.

8. Corporate Governance:

   • Public limited companies often follow robust corporate governance practices, with a clear separation of ownership and management. This includes holding regular board meetings, annual general meetings (AGMs), and reporting financial results to the public.

9. Prospectus:

   • Before making a public offering of shares, a public limited company is required to issue a prospectus. The prospectus provides detailed information about the company’s operations, financials, and the offer itself.

10. Listing Requirements:

    • To list on a stock exchange, a public limited company must meet specific listing requirements set by the exchange. This includes meeting financial standards and governance criteria.

Public limited companies play a crucial role in the financial markets, providing opportunities for investors to participate in the ownership and growth of large-scale enterprises. However, the regulatory requirements and the complexity of managing a publicly traded company make it essential for such entities to have a robust governance structure and compliance framework.