(i) Raising capital through public issue of shares- The most an important advantage of being a public company is to raise more capital as compared to other form of organization. (ii) Efficient management- A limited company is more efficiently managed or controlled entities as compared to other form of organization. (iii) Free transfer of shares- A public limited company can freely transferable its shares and that too without the prior consent of other shareholders. (iv) Larger Borrowing Power- Public companies are most recognized in terms of financial assistance and can have a rather huge magnitude of capital, which are not available to other form of organization. (v) Limited Liability of shareholder- The shareholders of a Public limited company have limited liability only up to the shares subscribed by them and should not be personally liable for the debts of the company.
Manish Kumar
What are the Advantages of Public Company Registration?
Tell us about the Advantages of Public Company Registration
Leave a Reply