CHARACTERISTICS OF PUBLIC LIMITED COMPANY

Public limited company is a corporate association of at least two persons which is registered with the registrar of companies and owned by shareholders who have limited liability




The word public means that the general public are welcome to buy shares in the company

The word limited means:

  • The liability of the company is limited to its total resources
  • The liabilities/ debts of shareholders are confined/restricted to the amount of capital/money they have invested/put in or agreed to pay in limited company
  • Their private estates/ properties cannot be touched or tampered with when the company is liquidated or bankrupt or insolvent.

FEATURES OR CHARACTERISTICS OF PUBLIC LIMITED COMPANY




  • Membership is from 2 shareholders and no maximum
  • Shareholders have limited liability
  • Shareholders are the owners of the company
  • It is registered with the registrar of companies
  • Capital is raised through the sales of shares
  • It holds annual general meeting
  • It is controlled by the board of Directors elected by fellow shares holders at the annual general meeting
  • -There is continuity of existence even after the death of important shareholders
  • It has a separate legal status
  • The letter Plc is written after the company name
  • Shares are sold at stock exchange




  • Shares are transferrable
  • Financial records are filed with the registrar of companies
  • Shares sold to the general public