1. Access to Public Capital
- A Public Limited Company can raise funds by issuing shares to the general public.
- It enables large-scale capital mobilization through Initial and Follow-on Public Offerings.
- Attracts both institutional and retail investors.
- Funding options are more diversified compared to private companies.
- Easier access to capital supports business expansion and infrastructure growth.
2. Limited Liability Protection
- Shareholders are liable only to the extent of their unpaid share capital.
- Personal assets of shareholders remain protected against company debts.
- Encourages public investment due to reduced financial risk.
- Enhances confidence among potential investors.
- Promotes responsible risk-sharing among a large number of stakeholders.
3. Improved Credibility and Recognition
- Public Limited Companies are perceived as more trustworthy and transparent.
- Mandatory disclosures and audits increase credibility with customers, banks, and suppliers.
- Listed companies enjoy greater brand visibility and recognition.
- Regulatory oversight enhances business discipline.
- Attracts business collaborations and government contracts more easily.
4. Easy Transferability of Shares
- Shares can be freely traded on stock exchanges, improving liquidity.
- Investors can buy or sell shares without needing board approval.
- Facilitates the entry and exit of shareholders.
- Promotes a dynamic ownership structure.
- Encourages investor participation due to market-driven valuations.
5. Perpetual Succession and Separate Legal Identity
- The company continues to exist regardless of changes in ownership or management.
- It has a separate legal identity from its members and directors.
- Legal actions can be taken in the company’s name.
- Ensures stability and continuity of operations.
- Supports long-term strategic planning and corporate legacy building.
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