Disadvantages of a Limited Company. Can raise more capital when compared to private limited companies; Have limited liability which means they cannot lose private assets in settlement of company debts. They are separate legal entities. This is also known as a divorce of control. More capital can be raised since there is no limited … Public Limited Companies have several advantages and disadvantages; Advantages. In order to be eligible to run as a public company, it should obtain another document called a trading certificate. Public Company registration is a complex procedure as it requires proper documentation. Limited Liability. Members: In order for a company to be public , it should have a minimum of 7 members (maximum unlimited). Each ownership type has its own advantages and disadvantages and a business should choose the one that best suits its needs. ... it may choose to become a public limited company (PLC). Public limited companies (PLCs) are similar to private limited companies, in the sense that they are legally distinct entities with their own assets, profits and liabilities. Public limited company is the large scale business that consists of 3 directors and 7 shareholders. Advantages of a Public Limited Company. Enjoy economies of scale. Advantages of Public Limited Company Registration . Membership is open to the public since shares are sold and bought on the Zimbabwe Stock Exchange. There are many public limited liability company advantages and disadvantages that you should be aware of before forming your public limited liability company (PLC). This distributes the powers to more and more people which may lead to … The working of the Public Company is subject to more strict compliances of the provision of the Companies Act 2013. Shareholders have limited liability. The PLC, also known as a publicly held company, can issue shares to the public. Shares can be freely transferred on the stock exchange. There could be a possible loss of control, as people may find that shareholders own over 50% of the shares, entitling them to the ownership of the business. Disadvantages of being a Public Limited Company. Distribution of powers; The shares of a public limited company can be bought by anyone, thereby increasing the number of members. Public companies must also comply with the rules of the Australian Stock Exchange. Meanwhile many companies limited by shares are formed as private companies, you may get to know through this article about the advantages and disadvantages of a public limited company. This is called "limited liability." Secondly, it means that those who invest in the firm are protected from extreme loss if the company fails. There is continuity after the death of a member. Advantages. 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