Public Limited Companies
CH
Public Limited Companies
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Third, a PLC normally has only 7 months after the end of its accounting reference period to deliver its
accounts to the Registrar.
Fourth, a PLC cannot take advantage of many of the provisions and exceptions allowable for smaller
companies under the Act, nor can it qualify as
dormant.
CAN A PLC ISSUE SHARES IN ANOTHER CURRENCY?
Yes it can provided that it has passed the necessary
resolutions to adopt that currency as part of its
authorised capital and given the directors the authority
to allot that capital. However it must always have at
least the authorised minimum of £50,000 Sterling in
issued capital, irrespective of what other currency it
uses.
A company may use as many currencies as it wishes
for its share capital provided that they are true
currencies. The ECU is not regarded as a true
currency for this purpose.
WHAT THEN IS THE ADVANTAGE OF A PUBLIC COMPANY?
A PLC has access to capital markets and can offer its
shares for sale to the public through a recognised Stock Exchange, and can issue advertisements
offering any of its securities for sale to the public.
CAN A PRIVATE COMPANY CONVERT TO A PLC?
Both a private company limited by shares and an unlimited company may re-register as a PLC, but a company limited by guarantee cannot do so.
A private company must pass a Special resolution that it be so re-registered and deliver a copy of the
resolution together with an application form to the Registrar of Companies. The resolution must also
* alter the company's memorandum so that it
states that the company is to be a public limited
company
*
make any other alterations to the memorandum so that it conforms to that of a public limited company
*
make any alterations likewise to the articles of
association of the company.
The application must be on the prescribed form, be signed by a director or secretary of the company and
must be accompanied by the following documents -
*
a copy of the memorandum and articles of
association of the company altered in accordance
with the resolution above.
*
a copy of a balance sheet prepared not more
than seven months before the application date and containing an unqualified report by the company's
auditors.
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