A Public Limited Company, legally known as PLC, is a publicly held company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed in the stock exchanges. PLC requires a minimum of 3 Directors as a prerequisite.
A Public Limited Company may be closed either voluntarily by the shareholders or compulsorily by the judiciary.
Requirements for closing Public Limited Company
Voluntary closing of Private Limited Company:
This is possible if,
Compulsory closing of Private Limited Company:
This happens in the following scenarios,
Procedure for Public Limited Company Closure
The dissolution of a Public Limited Company consists of three main stages:
To dissolve a Company, at least 2/3rd of the shareholders must adopt the resolution. The management must submit an application to the Register of Companies along with resolution of dissolution, the minutes of the general meeting
The dissolution resolution and submission of application is followed by liquidation, in a series a steps.
After the Public Limited Company has been liquidated as required, the company management board will have to submit an application to the Register for the deletion of the company from the Commercial Register. This can be done after a minimum of six months of the entry of the dissolution of the public limited company into the Register and providing notification thereof along with a final balance sheet and asset distribution plan to the application for deletion from the Register.
Liquidation of a Public Limited Company is a fairly time-consuming process that lasts at least six months. The activities of a dissolved Public Limited Company can be continued, or a merger, division or transformation of the Company may also be conducted. To do so, the liquidators must submit to the Commercial Register an application for continuing the company’s activities.
It takes at least 6 months to close a Public Limited Company
A minimum of 2/3rd of the total of shareholders must adopt the resolution of the Company.
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