TNAG-2378-FCO40-3457-Hong-Kong-nationality-British-Nationality-(Hong-Kong)-Act-19-1991 — Page 36

Public Limited Companies

C

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.