Advantages of Public Companies
-Prestige to benefit from the prestige conferred by the letter “PLC” (Public Listed Companies) “ -Offer shares to the public It is an advantage as it provides a public company with a new source of finance (as consideration received for the shares). It also provides an opportunity for raising finance. In private company, it is prohibited to offer share to the public under s755 of the Companies Act 2006. When s755 Companies Act 2006 is breached by offering shares to the public, the court may re registered the private company as a public company under s758 Companies Act 2006. The court may also order the wound up of the company under s758 if the company does not meet the requirement as public company or consider s759 Companies Act 2006 by making remedial order. Remedial order put the person back into position before the breach. The creditor, shareholder or Secretary of State for the Business, Energy and Industrial Strategy may make an application to court for s758 and s759 Companies Act 2006 order for the offending company.
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