public company

In the UK, a public company must satisfy the requirements of the Companies Act in that it must:

1. appoint two directors
2. a company secretary
3. have two shareholders
4. state that it is a public company in its memorandum of association
5. the company name must end with the words 'Public Limited Company' or 'PLC'
6. the memorandum must be in the form specified by Form F of the tables specified in the Companies Act
7. have an authorised share capital of at least £50,000
8. at the time it commences trading, £12,500 of the share capital must be paid up by the shareholders (that is a quarter of the value of each of the shares issued), as well as any premium payable on the shares. A certificate is required to be filed with Companies House that this is the case prior to the commencement of trading.

The accounts of a public company must be filed within 7 months of its accounting reference date, is not entitled to exemptions for filing accounts that apply to private companies and may not be voluntarily struck off the Register of Companies. Public companies are not restricted to issuing shares in Pounds Sterling, provided it is authorised to do so in its constitution.

The company secretary of a public limited company must have the requisite ability and knowledge to properly discharge the functions of a company secretary. See company secretary.

Public companies may be listed or unlisted, which is a reference to a listing on the Stock Exchange. The major advantages of public companies include that they have access to capital markets, may issues prospectus, and advertise and offer investments or securities to the public.

Usage: The public company was listed on the Stock Exchange Official List after it was incorporated.

Related Words: plc; private company; limited company; Official List; company secretary; director; articles of association; memorandum of association.