Nature of public limited companies

The disadvantages of incorporating a public limited company in Hong Kong

Rules and regulations

There are more regulatory measures in the public limited company since there is a need to protect their shareholders. Some of the restrictions that are put on the public limited company include:

  • PLCs must have at least two directors
  • AGMs must be held
  • High transparency in the accounts must be produced after every six months, among others.
  • Public Disclosure
  • The Hong Kong public limited companies are expected to disclose more information to the public especially their accounting information since the members of the public are some of the shareholders of such companies.
  • Require large initial capital
    • The public limited company would require that the owners have a relatively huge amount of capital. A public limited company in Hong Kong though does not have a minimum share capital required should at least have a share capital that is worth HKD 10,000.