A public company limited by shares is a type of company whose shares can be traded in a public stock exchange. The name of the company is always suffixed by PLC (Public Limited Company). In order to form a limited company, it must be registered with the Companies House.
There are a few minimum requirements that must be taken care of when incorporating a public company limited by shares. The minimum share capital requirement to form a public limited company is £50,000 and out of this 25% must have been paid for. Secondly, in order to start a public limited company, it is necessary to have a minimum of two shareholders and two directors. One of the directors can also assume the role of a company secretary. Finally, a certificate of entitlement is a necessity in order to borrow capital and do business. The fulfillment of all these requirements is absolutely necessary in order to incorporate and register the company.
While choosing the company directors for a public company limited by shares, some things have to be kept in mind. The person must not be bankrupt or disqualified under law from holding a directorship. He must not be 70 years of age during appointment or while in office, until a special resolution is passed regarding the same. However, there is no minimum age for appointment of the director in under UK law. But appointment must be carried out only after the consent of the person.
The secretary and the joint secretary of a public company limited by shares must also be chosen with great care and after considering a number of factors. He must be a capable and knowledgeable person who is aware of his responsibilities in the company. He must be quite experienced in his field of work. Even barristers, attorneys or solicitors who have been practicing in UK are eligible for the post.
Forming a public company limited by shares is quite easy. It just requires the submission of a few documents with the Companies House. This process can be undertaken either manually, electronically or through a company formation agent.