Public Limited Company
A public limited company (PLC only) is a type of limited company in the United Kingdom which is permitted to offer its shares to the public. All public limited companies' names end in "PLC"
While it is not compulsory for a PLC to offer its shares to the public (some PLC’s are privately owned, maintaining the PLC designation for the extra financial status), many do so, and their shares are usually traded on either the London Stock Exchange or the Alternative Investments Market (AIM).
Formation of a public company requires a minimum of two directors. In general terms anyone can be a company director, provided they are not disqualified on one of the following grounds:
- The person is over 70 years of age or reaches 70 years of age while in office, unless they are appointed or re-appointed by resolution of the company in general meeting of which special notice has been given.
- The person is disqualified by a Court from holding a directorship.
- If the person is under 16 years old.
- Some people who are not British or European Union citizens are restricted as to what work they may do while in the UK, which may exclude them from being a director.
- The secretary (or each joint secretary) of a public limited company must also be a person who appears to the directors to have the necessary knowledge and ability to fulfill the functions.
There is a minimum share capital for public limited companies: Before it can start business, it must have allotted shares to the value of at least £50,000. A quarter of them, £12,500, must be paid up. Each allotted share must be paid up to at least one quarter of its nominal value together with the whole of any premium.
NB. We do not currently form PLCs.