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Friday 19 October 2012

Cutting The Fat – Part 2

What’s the difference between a private limited company (“Ltd”) and a public limited company (“plc”)?

To a layman, the answer is often that the former is small (a ‘private concern’ if you like) whereas the latter is big, as in, ‘listed’; an entity of weight and substance.  Of course, lawyers know that this is somewhat wide of the mark. We spent time at college writing essays about the reality that there are in fact some very large Ltds and correspondingly, many tiny, two member plcs which are certainly not listed and which have precious little financial clout.

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