Distinguish between public limited company and private limited company.
A public limited company (PLC) and a private limited company (Ltd) are both types of business entities with distinct characteristics, particularly in terms of ownership, regulations, and the scope of their operations. Here are the key differences between the two: 1. Ownership and Shareholders Public Limited Company (PLC) : Shares are publicly traded on stock exchanges and can be purchased by anyone. There is no limit on the number of shareholders, which allows a PLC to have a large, diverse ownership base. Private Limited Company (Ltd) : Ownership is limited to private individuals, often family members or close associates, and shares cannot be traded publicly. The number of shareholders is typically limited by law, often to a maximum of 50. 2. Share Transferability Public Limited Company (PLC) : Shares are freely transferable, meaning shareholders can buy and sell shares on the stock exchange without any restrictions. Private Limited Company (Ltd) : Share transfer is restricted,...
