A plc is an abbreviation for “public limited company”. A plc can be either listed or unlisted on the stock exchange. Such companies usually have the initials “plc” at the end of their business name. Most public limited companies offer stock in their businesses for the public to buy.
Registering a PLC
A public limited company must register with the Companies House. Several documents are required to register; these include the articles of association and the memorandum of association. The articles of association spell out the roles the company officers will execute. The memorandum contains the company directors’ signatures and the official company address.
Two other forms must be filed with Companies House that declares the company has followed all the necessary legal obligations and detailed information about the company directors, or officers.
A company may choose to hire a registration firm to accomplish the task of filing the documents. These firms often file electronically and can save time.
Accounting and Annual Reports
The first day of the actual company beginning to operate must be shown as the first day of accounting. A report will be sent to Companies House after one year showing the accounting of the year. An annual report is also due each year for public limited companies.
Public Limited Company Personnel
A public limited company must have at least two officers or directors. The directors should be older than sixteen and younger than seventy. The company must also name a secretary who serves as an administrator for the business.
PLC Shares
A public limited company may offer different types of shares for public sale. These include ordinary, preference, cumulative preference, bearer, and redeemable shares. Each type of share has different conditions and a company may choose any or all types of shares.
Changing from a Private Limited Company to a PLC
A private limited company can decide to become a plc by virtue of a resolution passed by the directors. The business can file to change its status and can add changes to the memorandum and articles of association. The share capital must reach a minimum required by law.
