Advantages of a public company.
- The business has its own legal identity and can own assets/property.
- Easy to raise large amounts of capital for growth through the issuing of shares to the public.
- Shareholders have a limited liability for the debt of the company/Shareholders may only loose the amount which they invested.
- Competent and knowledgeable directors may be appointed by shareholders.
- Attracts small investors as shares can be transferred freely/easily.
- No limitation on the number of shareholders, so growth/expansion is not limited.
- Additional capital can be raised by issuing debentures to the public.
- The public has access to the company's financial information as financial reports have to be published annually.
- The company keeps its shareholders/stakeholders regularly informed about its performance/share values/future plans.
- The company continues to exist, even if shareholders die/retire/sell their shares.