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Word Count: 530
Public Companies are those which are listed on the stock exchange The public may buy and sell shares in them A public company will have the word limited after the company name usually abbreviated to LtdThe characteristics of a public company are that they are limited by shares and have limited liability Limited by shares means that shares in the company can be bought and sold freely shares are featured in the stock-exchange While limited liability mean that in the event of company failure eg bankruptcy the financial responsibility of the individual shareholders is restricted to the face value of hisher shares In other words personal assets cannot be touched Another characteristic of a public company is the Limited or Ltd after the companies name It distinguishes between public and private companies clearlyIn order to set up a public Company 5 or more people need to follow the procedure stated in the Company Law Review Act 1998 That is they need to fill out form 201 refer to Appendix 1 from the Australian Securities and Investments Commission ASIC This form contains particulars of the initial members office holders and office addressesIn the past companies had to have a memorandum and Articles of Association Now they may need either a single set of rules known as a constitution or have no constitution and rely on basic rules of internal management set out in the law known as Replaceable rules These rules can be replaced by a constitution at any time hence its nameWhen a company is registered ASIC issues the company with a unique nine-digit number called the Australian Company Number ACN After the issuing of the ACN number the company is officially registered as a Public CompanyThe operation of a public company has its advantages and its disadvantages due to its function and its influences from its external environmentJ The shareholders have limited liabilityJ The company has perpetual succession if the main owner
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