Public Limited Companies
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Public Limited Companies
H
ARE THERE ANY OTHER RESTRICTIONS ON A PLC?
Yes there are.
First, a newly formed PLC cannot commence business
or borrow until it has obtained a certificate to do so
under section 117 of the Companies Act 1985, from
the Registrar of Companies. Such a certificate is
obtained by the secretary or a director completing a
statutory declaration on the prescribed form (form
117) that the company has an issued share capital of at least the statutory minimum (£50,000) paid up to at
least one quarter on each share plus the whole of any
premium on it. Thus it is not sufficient for a PLC to
have issued £50,000 capital and received payment in
total of £12,500, each share must be paid to at least.
25% of its nominal value, eg every £1 share issued
must be paid to at least 25p.
The form 117 will also require certain other details to be
shown, including details or estimates of the company's preliminary expenses, and details of any benefits given to
promoters.
Second, a PLC must have at least two directors. The
secretary must also be a person who appears to the directors to have the requisite knowledge and ability to fulfil the functions and who
a) held the office of secretary or assistant or deputy
secretary on 22nd December 1980,
2.
or
b) for at least 3 of the 5 years preceding his
appointment, held the office of secretary of a non
private company,
or
c) is a member of at least one of the following bodies
i
the Institute of Chartered Accountants of England and Wales.
the Institute of Chartered Accountants of Scotland
iii the Chartered Association of Certified Accountants
iv the Institute of Chartered Accountants of Ireland
V the Institute of Chartered Secretaries and Administrators
vi the Institute of Cost and Management Accountants, or
vii the Chartered Institute of Public Finance and Accountancy,
d) is barrister, advocate or solicitor of any part of
the United Kingdom,
e) is a person who, by virtue of his previous
experience or membership of another body appears to
the directors to be capable of discharging the
functions of secretary.
3.