PUBLIC LIMITED COMPANY
- ARE
- Jan 26, 2020
- 1 min read
A public limited company is a voluntary association of members. Therefore, after incorporation, it has a separate legal existence and the liability of whose members is limited. It must have a minimum of seven members but there is no limit as regards the maximum number. The shares of a company are freely transferable. Additionally, any shareholder can do this without the prior consent of other shareholders or without subsequent notice to the company. The liability of a member of a company is limited to the face value of the shares he owns. Once he has paid the whole of the face value, he has no obligation to contribute anything to pay off the creditors of the company.
Advantages
Continuity of existence
Larger amount of capital
Unity of direction
Efficient management
Limited liability
Disadvantages
Scope for promotional frauds
Undemocratic controls
Scope for directors for personal profit
ARE provides support and consultancy related to publicity, advertisements, publications, promotional programs for mass awareness and fundraising, execution of planning and programs for social practice, monitoring, evaluation and management.
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