The Main Features of a Public Limited Company as a Form of Ownership

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Shareholders own a PLC (Public Limited Company). By this I mean the people with an investment in the PLC own it. For Example you can buy shares in J Sainsbury’s plc, via the stock market. However the shareholder that has a larger percentage of shares than all other shareholders put together i.e. 51%, has 51% of the vote if there is a vote, he/she has the most power. The Capital needed to start a Public Limited Company could come from 2 different places. By this I mean that some of the money comes from a loan from the bank, and the rest comes from shares sold to the public, via the stock market. For Example 28% of J Sainsbury plc’s Share Capital came from Lord Sainsbury. However £50,000 is needed to start a PLC. Limited Liability means that you are only liable for the business and not any of your own belongings. By this I mean that if I were in debt of £60,000 I would have to lose my business because my capital of £50,000 is now all gone. For Example J Sainsbury plc have a Share capital of £18,441,000,000. However if you see your share prices falling you can always appoint a new director. Dividend is paid out using the profits from a PLC. By this I mean that the profit is divided into percentages and is paid out to shareholders. So if there was £10,000 profit and I owned 20% shares then I would receive £2,000. For Example if J Sainsbury plc were in profit of £500,000 and I had 5% of shares then I would receive £25,000 dividend. However the lower the percentage of shares you have the lower your dividend is going to be. The Board of Directors makes decisions in the PLC. By this I mean Shareholders elect a Board of Directors, their job is to run the

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