Public Limited Companies

Public Limited Companies (PLC) – Overview
A Public Limited Company (PLC) is a type of company that offers its shares to the general public through a stock exchange. It is commonly used for larger businesses that require significant capital.

Key Features of a Public Limited Company
Feature Description
Minimum Shareholders 7 (no maximum limit)
Minimum Directors 3 (at least one must be a resident of India, if registered in India)
Minimum Capital ₹5 lakh (in India); no fixed limit globally but depends on listing norms
Limited Liability Shareholders’ liability is limited to their shareholding
Transferability of Shares Shares are freely transferable
Stock Exchange Listing Can be listed on a stock exchange (e.g., NSE, BSE in India)
Regulatory Body SEBI (India), FCA (UK), SEC (USA), depending on jurisdiction
Company Name Suffix Must end with “Limited”

Advantages
✅ Access to Capital: Can raise funds by issuing shares to the public.

✅ Liquidity: Shareholders can sell shares on the stock exchange.

✅ Brand Image: Public companies enjoy more credibility and public trust.

✅ Expansion Opportunities: Easier to fund mergers, acquisitions, or new projects.

Disadvantages
❌ Heavy Regulation: Subject to stricter compliance, audits, and disclosures (e.g., SEBI/ROC filings in India).

❌ Loss of Control: Dilution of ownership and decision-making.

❌ Costs: Expensive to set up and maintain (compliance, reporting, listing fees).

❌ Vulnerability to Takeovers: Shares can be bought by hostile entities.

Compliance Requirements (India Specific)
Filing of annual returns with the ROC

Conduct of Board & General Meetings

Quarterly results and disclosures (if listed)

Audit of accounts and appointment of statutory auditors

Compliance with SEBI (LODR) Regulations, 2015 (if listed)

Examples
Infosys Limited

Tata Motors Limited

Reliance Industries Limited