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Hi Mike,
from the notes, it says that for a public limited company:
“The constitution states that it is public”
does this mean to say that the shares can be publicly traded or something else? could you expand on what is meant by “states that it is public”?
thank you
“could you expand on what is meant by “states that it is public”?”
The constitution (ie the Articles of Association) state, in the second clause of the Articles, something like “The company is a public limited company”
and that’s what it means where I have written “The constitution states that it is public”
This does NOT automatically mean that the shares can be publicly traded on a recognised stock exchange
It simply means that the company is not a private company and if it should by chance in the future wish to be floated on a stock exchange it is already a public company so avoids all the hassle of switching status from private to public
OK?
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