Public companies limited by shares


Published by a ÑÇÖÞÉ«ÇéÍø Corporate expert
Practice notes

Public companies limited by shares


Published by a ÑÇÖÞÉ«ÇéÍø Corporate expert

Practice notes
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This Practice Note summarises the main features of a public company limited by shares. It also covers key differences with private companies limited by shares, and why a public company limited by shares might be chosen as a preferred business vehicle instead of another form of UK company.

What is a public company limited by shares?

A public company limited by shares is a legal entity which is separate and distinct from its members. It is owned by its members who hold shares in the company. It is managed by its directors in line with the provisions of the Companies Act 2006 (CA 2006) and the company’s governing constitutional document, otherwise known as the articles of association.

The company is a very commonly used business vehicle. There are over five million registered limited companies on the Companies House public register. 95% of those companies are private companies limited by shares. Public companies limited by shares have been declining since 2008 and make up only 0.1% of the total number of companies on the register.

The other types of UK

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Shares definition
What does Shares mean?

The CA 2006 merely provides that a share is a share in the company's share capital. A company's share capital comprises the number of shares issued by it to investors either on or after incorporation. Those investors then become the shareholders in the company. A shareholder’s shares are their personal property. By contrast, the assets of a company are owned by the company itself. Owning shares does not entitle a shareholder to any property rights in the company's assets.

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