A company whose shares are traded on public markets such as the New York Stock Exchange. See also private company. Rabbi Trust. An irrevocable trust for a deferred compensation plan, like an escrow account, created by the employer to protect a highly compensated employee's deferral from change of control or change of compensation strategy - but not, however, from bankruptcy.
Shares may be offered for sale to the general public. It may be quoted on the Stock Exchange or Alternative Investment Market but not necessarily so. It is interesting to note that out of 13,000 public companies registered in the U.K. only 2,100 are quoted on the London Stock Exchange. Before a PLC can start trading or borrow money it must satisfy Companies House that at least £50,000 worth of shares have been issued and that each share must have been paid up to at least 25% of its face value. It must have at least two directors and a qualified secretary.
a company which fails to comply with any one of the above requirements in the Companies Ordinance A private company does not need to file its accounts with the Companies Registry, so it can maintain confidence of the financial situation of the company
a company which trades shares over a securities exchange to the public at large and is required by law to file certain information with the United States Securities Exchange Commission about the operations and finances of the corporation
A public company is one which is not incorporated as a proprietary company. It may or may not be listed on the stock exchange for the public sale of shares, although any company that is so listed, is a public company. More onerous obligations are imposed on public companies than on proprietary companies.
A company that is subject to the reporting requirements of the 1934 Act by selling securities to the public in an Initial Public Offering or other offering. The 1934 Act governs the trading in the securities of a public company.
A public company is permitted to have more than 50 non-employee shareholders. Its ability to offer shares is less limited than a proprietary company. Public companies may also apply for listing on a recognised stock exchange where they meet certain criteria. Shares can usually be transferred to different or new owners more easily. Most medium to large businesses are owned by public companies. Public companies have significantly greater reporting requirements to fulfil. Qualifying / not qualifying In relation to an ESOP, shares (or rights to such shares) are either â€˜qualifyingâ€(tm) or â€˜not-qualifyingâ€(tm) for the purposes of accessing the tax concessions available under Division 13A ITAA. Plans providing qualifying shares or rights to employees will access the tax concessions and plans using not-qualifying shares or rights will miss out.
A public Company must state it is such in its Memorandum; it must have 'Public Limited Company' as the last words in its name and have a nominal capital of not less than the prescribed amount, which is 50,000 (December 1981). See also 'Private Company'.
Under the Companies Act 1985, companies are incorporated as either private ("limited") or public ("Plc"). They are distinguished by different standards of regulation in the Companies Act 1985 and other legislation. Public companies require a minimum capital investment of £50,000 and are designed for use as more substantial companies with wide share ownership. They may be listed. Private companies are the category which represents the remainder of companies.
A public company often refers to a company which either has or does offer its securites (i.e., stock, options, bonds, etc.) for sale to the general public, provided such shares have not later been redeemed (or bought back) by the company. Typically, the securities of a public company are owned by a large number of investors while the shares of a private company are owned by relatively few shareholders. However, a company with a large number of shareholders is not necessarily a public company.