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Disadvantages of being a Public Limited Company. The working of the Public Company is subject to more strict compliances of the provision of the Companies Act 2013. There could be a possible loss of control, as people may find that shareholders own over 50% of the shares, entitling them to the ownership of the business. This is called "limited liability." Can raise more capital when compared to private limited companies; Have limited liability which means they cannot lose private assets in settlement of company debts. There is continuity after the death of a member. Limited liability: The liability of a public company is limited. Advantages of a Public Limited Company. Disadvantages of a Limited Company. Public limited company is the large scale business that consists of 3 directors and 7 shareholders. Each ownership type has its own advantages and disadvantages and a business should choose the one that best suits its needs. A Public Limited Company (PLC) means, first, that the firm is parceled out into shares and sold "publicly" on any or all the globe's stock exchanges. Public companies must also comply with the rules of the Australian Stock Exchange. Public limited companies (PLCs) are similar to private limited companies, in the sense that they are legally distinct entities with their own assets, profits and liabilities. The PLC, also known as a publicly held company, can issue shares to the public. Meanwhile many companies limited by shares are formed as private companies, you may get to know through this article about the advantages and disadvantages of a public limited company. ... it may choose to become a public limited company (PLC). Membership is open to the public since shares are sold and bought on the Zimbabwe Stock Exchange. This distributes the powers to more and more people which may lead to … This type of business structure is a limited company that is formed in the United Kingdom (UK). However, shares in a public company can be freely sold and traded to the general public and their shares can be listed on a stock exchange. This is also known as a divorce of control. Limited Liability. Advantages of Public Limited Company Registration . There are many public limited liability company advantages and disadvantages that you should be aware of before forming your public limited liability company (PLC). Shareholders have limited liability. Public Company registration is a complex procedure as it requires proper documentation. More capital can be raised since there is no limited … Members: In order for a company to be public , it should have a minimum of 7 members (maximum unlimited). Enjoy economies of scale. PLC enjoys huge benefits like limited liability, … Advantages. Public Limited Companies have several advantages and disadvantages; Advantages. Shares can be freely transferred on the stock exchange. 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