Public limited company

Encyclopedia : P : PU : PUB : Public limited company

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Business law
Business organizations
Common law business forms:
Sole proprietorship
Partnership  · Corporation
General partnership
Business trust
Statutory business forms:
Limited partnership
Proprietary limited company
Public limited company
Limited liability partnership
Limited liability company
Civil law corporate forms:
AB  · AG  · ANS  · A/S  · GmbH
K.K.  · N.V.  · OY  · S.A.
EU law:
SE  · SCE
Doctrines
Corporate governance
Limited liability  · Ultra vires
Business judgment rule
De facto corporation and corporation by estoppel
Piercing the corporate veil
Related areas of law
Contract  · Civil procedure

The initials plc after a UK or Irish company name indicate that it is a public limited company, a type of limited company whose shares may be offered for sale to the public.

The designation plc or PLC (either form is acceptable) was introduced in the UK by the Companies Act 1980, and in the Republic of Ireland by the Companies (Amendment) Act 1983. In the Republic of Ireland, the initials "cpt" (for the Irish cuideachta phoiblí theoranta) may be used instead, but this is rarely the case. Welsh companies may use the letters "ccc" (for cwmni cyfyngedig cyhoeddus) in similar fashion. Certain public limited companies incorporated under special legislation (mainly nationalised concerns) are exempt from carrying the letters plc, ccc, or cpt.

When a new company is incorporated in either England and Wales or Scotland, it must be registered with Companies House, which is an Executive Agency of the Department of Trade and Industry. In the Republic of Ireland, the equivalent body is the Companies Registration Office, Ireland. Northern Ireland also has a Registrar of Companies.

Internationally plc status is roughly equivalent to AG, S.A., N.V. and Corporation.

Requirements

When forming (or creating) a PLC there must be:

• at least £50,000-worth (Republic of Ireland: €38,092.14) of share capital of which at least 25% must have been paid for.
• two shareholders
• two directors, one of whom may also be the company secretary
• a certificate of entitlement (the trading certificate) to do business and borrow capital

While it is not compulsory for a PLC to "float" its shares (some PLCs retain ownership of all their shares, 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). Irish public limited companies usually trade on the Irish Stock Exchange, though many also list on the LSE, or more rarely, the AIM.

See also

• Private limited company
• Limited liability partnership (LLP) introduced in 2001
• Unlimited company
• List of UK public limited companies

External links

• [List of top 1000 PLCs]

 

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