A Public Limited Company (PLC) is a type of business that allows the general public to buy and sell its shares on the stock exchange. This structure is ideal for large companies that need to raise a lot of capital by offering shares through an Initial Public Offering (IPO).
A PLC must have at least seven members and follow strict rules and regulations set by the Securities and Exchange Board of India (SEBI) and other authorities. One of the main benefits of a PLC is its ability to collect funds from many investors, helping the company grow quickly and support large projects.
Since shares are traded publicly, investors can easily buy or sell them, providing liquidity to shareholders. However, managing a PLC also involves more responsibilities, such as publishing quarterly financial results, conducting annual audits, and holding regular shareholder meetings.
Public companies must follow high standards of corporate governance and operate with transparency. Even though the regulatory requirements are more demanding, a PLC offers a great opportunity to raise large-scale funding and expand the business, making it a preferred choice for big companies.