Public Limited Company Fundamentals

The video tutorial covers the concept of public limited companies, explaining their nature, characteristics, and governing bodies. It discusses the types of public limited companies based on financing, and outlines the advantages and disadvantages of forming such a company. The tutorial also provides guidance on the constitution process of a public limited company, highlighting the legal requirements and necessary documentation.

What is the liability of partners in a limited company?

• Unlimited liability

• Liability extends to personal assets

• Limited to the capital contributed

• No liability at all

What is the minimum capital required to constitute a public limited company?

• 50,000 euros

• 30,000 euros

• 60,000 euros

• 100,000 euros

Which body is considered the supreme authority in a public limited company?

• Audit Committee

• Board of Directors

• General Meeting of Shareholders

• CEO

What is the role of the board of directors in a public limited company?

• To manage day-to-day operations

• To elect shareholders

• To approve annual accounts

• To represent the company in legal matters

How can an open limited company raise funds?

• Through private loans

• Through government grants

• By issuing shares in the stock market

• By selling company assets

What is one advantage of forming a public limited company?

• No need for professional managers

• No requirement for a board of directors

• Unlimited liability

• Easy access to financial markets

What is a potential disadvantage of a public limited company?

• Limited liability

• Rigid business structure

• Easy transfer of shares

• Access to financial markets

Why might there be conflicts between shareholders and managers?

• Excessive profits

• Too many meetings

• Lack of communication

• Different objectives

What is required to constitute a public limited company?

• A simple registration form

• A private agreement

• A public deed with company statutes

• A verbal agreement

What information is typically included in the charter of a public limited company?

• Names and details of administrators

• Company's annual profits

• List of competitors

• Future business plans