Resources - Public Company Limited by Shares

Public Company Limited by Shares

What is it?

This is a company constitution for a public company limited by shares which may eventually float. It contains all the short form clauses required by the ASX for compliance with listing rules.

How does it operate?

All the facets of a company, as explained in heading number 1, apply – except that with a public company, the directors cannot refuse to register a share transfer.

The choice of a public company as an entity to run a business or hold assets needs to be considered carefully. A public company must have a minimum of 3 directors. A public company is also subject to audit and reporting requirements, For this reason, they are a far more expensive entity to run than a standard private company.

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