Let’s face it. The world we live in today is a very competitive place and there are so many businesses out there competing for the same customers. In order to succeed, you need to be different from everyone else and give your potential customers something they can’t get anywhere else. One of the best ways to do this is by starting your own limited company.
Share Capital
Share capital is the money that you invest in your public limited company. It can be in the form of cash or other assets, such as property or equipment. The share capital is divided into shares, which are like small pieces of ownership in a public limited company. When you buy shares from an existing shareholder, you become an owner of that company and can benefit from its growth (or loss).
Your shareholding will entitle you to vote at general meetings where important decisions about running the business are taken by shareholders as well as employees who have been granted voting rights by their employers.
Articles Of Association
Every public limited company must have Articles of Association. The Articles of Association is a document that sets out the rules for the company and its members.
In other words, it’s like a constitution for your new business. When you register with Companies House, they will ask you to provide them with copies of your articles so they can be filed away in their archives forevermore!
Memorandum Of Association
A Memorandum of Association is a document that contains basic information about a company, its objectives, and share capital. It is a legal document that must be registered with the registrar of companies before it can start functioning as a company. The memorandum can be either in printed form or electronic format depending on your preference. It must be signed by at least one director when submitting it for registration.
Board Of Directors (BOD)
- The Board of Directors is the highest authority in a public limited company. It is responsible for setting out the company’s objectives and policies and monitoring their implementation.
- The BOD consists of members elected by shareholders at an annual general meeting (AGM), who serve for a fixed term of one year or until their successors are elected.
- The minimum number of directors required to form a quorum at an AGM is two, but this may be increased by a resolution passed by shareholders who have voting rights (usually 50%). In addition, some companies may require that any resolutions proposed by members not entitled to vote at general meetings require unanimous approval if they are proposed on behalf of another person or group who do not hold voting rights themselves; this might happen where someone wishes themself into being appointed as director under section 690 Companies Act 2006).
Nomination And Remuneration Policy
The NRC’s role is to ensure that the company complies with its legal and regulatory obligations. It also ensures that:
- The board has an appropriate balance of skills, knowledge, and experience
- Directors are able to discharge their duties effectively without being underpaid or overpaid for their work
The AC monitors the financial reporting process, audits the accounts, and reports on internal controls. It also reviews related party transactions and other key matters including risk management policies.
The RC oversees executive remuneration policy including pay packages and bonuses paid to executives at all levels within a company.
Audit Committee (AC)
- The Audit Committee shall consist of not less than 3 members.
- The Audit Committee shall be responsible for the appointment, compensation, retention, and oversight of the work of the independent auditor. It also monitors their performance on an ongoing basis and reports thereon to the Board at least once a year through its Chairperson or another member designated by it from amongst its members who may be non-executive directors.
- In addition to this role, as regards financial reporting matters, in particular those related to internal control systems and risk management policies adopted by the Company (including any significant changes thereto), it also has an important responsibility in ensuring compliance with laws relating to public companies including requirements regarding insider trading/market manipulation, etc., since these matters fall within its ambit under Rule 5(2)(c) read with Rule 10A(7) under SEBI regulations 2016 which mandates that every listed company must form an AC comprising one independent director (who could be either part-time or full-time) along with two other non-executive directors who should have proved themselves capable enough over years through their work experience so as not only understand what happens inside the company but also outside market conditions affecting business decisions taken by the management team.”
Conclusion
The above are some of the important aspects of a Public Limited Company. As you can see, there are many things that need to be considered when forming one. However, if you follow the steps we have outlined in this article then you will be well on your way to creating your own successful business!
