Shares of a public limited corporation are listed and exchanged at a stock exchange market freely. Shareholders of a public limited corporation are limited to possibly losing just the amount they have paid for the shares they possess.

Some of the advantages of a public limited company are:

• Led by a Board of Directors.
• It has limited liabilities.
• It can have several members.
• The shares are transferable.
• One can have financial privacy.
• Large capital
• It is not affected by the death of one of its shareholders.

Main features of a Public Limited Company

• The company has a separate legal existence from the individuals that make up its membership.
• All of its actions from inception to completion get governed by tight rules, laws, and regulations.
• A business must have at least seven members, but there is no limit to the number of members it can have.
• The corporation raises capital by selling shares, and the people who buy the shares are known as members. The whole sum collected is referred to as the share capital.
• A business’s shares can be freely transferred, even without the approval of other shareholders or prior notice to the firm.
• A member of a corporation’s responsibility is limited to the face value of the shares he owns. He is under no obligation to contribute anything to the company’s creditors once he has paid the full face amount.
• A company’s shareholders do not have the right to engage in the day-to-day management of the company’s operations. It ensures that ownership and management are kept separate from each other. The Board of Directors has ultimate decision-making authority in a firm, and all policy decisions get taken by majority vote at the Board level. It assures that management is moving in the same direction.