Public and Private companies

Private companies

Private limited is a business owned and managed by at least 2 persons

Owners are referred to as shareholders

Private companies have limited liability

Private companies raise finance by issuing share

Cannot sell share without consent of the other shareholders

Public companies

Public limited is a business owned and managed by at least 2 persons

Public limited companies have plc after their company name eg. FET plc

PLC companies have limited liability

Public limited companies raise large amount of finance by selling shares

Can sell shares to general public