Public Limited Company (PLC)
A Public Limited Company (PLC) is a company that meets the following
criteria:
-
The company's Memorandum must state that it is a public
company
-
The Minimum issued share capital is £50,000. A minimum
of 25% of each issued share must be fully paid up plus the whole
of any premium paid for the share. (For example, a company with
a share capital of £50,000 is required to have a minimum
of £12,500 fully paid up)
- The company must have a minimum of 2 directors and one secretary
-
The company's secretary must meet the criteria set out
on Section 273 of the Companies Act 2006. This states that the
secretary must have the necessary qualifications and (or) experience
required for the position (i.e. a Solicitor or Chartered Accountant)
-
The company must have an annual audit irrespective of turnover
by a qualified auditor.
-
Before the PLC can trade or borrow money, it must obtain a
Trading Certificate from Companies House by completing form
117, witnessed in the presence of a solicitor. This certificate
confirms that the company has met the share capital requirements
as set out above. This does not apply where the company has
re-registered as a Public Limited Company from a Private Limited
Company.
As the minimum issued share capital of a PLC is a substantial
amount, a PLC may be seen to have more credibility to its proposed
creditors than a limited company whose issued share capital may
be as little as £1.
A PLC may be able to raise capital by selling its shares through
a recognised stock exchange. This option is not available to private
companies. A stockbroker will be able to assist you in providing
information as to how to sell your shares to the public.
A Private Limited Company may re-register as a Public Company,
provided it meets the above criteria. The company must revise
its Memorandum & Articles to those of a public company and
provide confirmation from an auditor that it meets the minimum
share capital requirements