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Advantages of Public Limited Company

If you seek to invest in a proposition opportunistic enough to fulfill all your objectives in a grand manner, a Public Limited Company (PLCs) is all you need. A PLC is the only form of business that involves participation of the general public as well. Heard about TATA Steel, HAIL, BHEL, etc.? Even you can be a part of one. Let me brief you about why you should!!

A public limited company is a type of company that offers the public to subscribe for its shares thus providing flexibility in transfer of shares (i.e. shares could be sold easily to another person via various ways). A public limited company supersedes all other forms of business in all aspects. Thus the broad stimulators that you must utilize before thinking of entering into this form are as follows:

  • Lower risk: As the number of shareholders is quite large, the risk borne by each shareholder is considerably low. To be more precise the risk of each shareholder is limited to the face value of shares held by him.
  • Better Management: Since investing in PLC means catering to the interests of public at large, the top management will always try and be instrumental in improving its activities by employing professionals and experts. Thus managing its operations in a better manner.
  • Better Promotion: Very often one sees an offer for subscription for the shares of a Public limited company, and thus is directly attracted to not only the shares of the company but also to the products and services provided.
  • Capital: Raising capital is much easier for a public limited company through public subscription as well as stock market. Easy funding and that too in gigantic volumes is a characteristic that only PLCs enjoy. Public image: public limited companies generally have a better image in the eyes of society, as compared to other forms.
  • Democratic in nature: The directors could not dictate the decisions in the company as the rights in decision making process also vest in the hands of shareholders. Thus democracy is maintained well. Greater credibility: Banks and other financial institutions easily give loans to PLCs due to its high credibility.

We do not want to keep you under the veil of ignorance by only enumerating the benefits PLCs. There are certain flaws that must be taken care of while deciding to invest your very precious money, time and effort in PLCs.

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About Setindiabiz

Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.

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