Legal Structure Nandhika Emma jack

Public Company

"Listed on the Australian Security Exchange general public may buy and sell shares in those companies."
  • A Public Company is Incorperated


  • Toyota
  • Facebook

Sources of Finance:

  • Shareholders - Up to 50


  • Small - Large


  • There is limited liability for the shareholders.
  • The business has separate legal entity. There is continuity even if any of the shareholders die.
  • These businesses can raise large capital sum as there is no limit to the number of shareholders.
  • The shares of the business are freely transferable providing more liquidity to its shareholders .


  • There are lot of legal formalities required for forming a public limited company. It is costly and time consuming.
  • In order to protect the interest of the ordinary investor there are strict controls and regulations to comply. These companies have to publish their accounts.
  • The original owners may lose control.
  • Public Limited companies are huge in size and may face management problems such as slow decision making and industrial relations problems


Created with images by d26b73 - "reunion"

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.