Open joint-stock company (JSC) is a legal structure of corporations in the United Kingdom, which is essentially similar to publicly traded companies in the United States. The PLC can release a lot of different stock, such as equities, cumulative preference shares, preference shares, bearer shares and shares subject to repurchase.
PLC-a LIMITED LIABILITY company formed in the United Kingdom and the Republic of Ireland. Although PLCs may be organized as a private company, often a public company. The company’s shares are freely traded on the stock exchanges. In accordance with the UK law company, PLC must have a minimum share capital of £ 50,000 and the designation of the PLC after your company name.
PLC as a public company in the United States usually pays dividends periodically, until the company operates profitably. Shares and voting rights shareholders at the annual General meeting of the company, although voting rights may vary depending on the type of shares owned. As a rule, the number of voting shares that the investor corresponds to the number of shares owned.
A PLC may offer various types of shares under the following main categories of shares:
1. Ordinary Shares
This is the most frequently issued type, basically the same as ordinary shares on U.S. stock market. Ordinary shares carry voting rights, but generally there are no special rights for it. Ordinary shares can be divided into different classes such as A or B, and have different stock prices.
2. Cumulative Preference Shares
This type roughly corresponds to the share preference shares of us stocks. As USA preferred stock, they come with the caveat that all scheduled dividend can not be paid transferred and must be paid before the company may pay dividends on one ordinary share.
3. Preferred Shares
It’s a little less privileged class of stock. Holders of preferred shares are entitled to receive dividend payments before dividends are paid on other types of stocks. Preference shares do not usually give the right to vote.
4. Bearer Shares
Bearer shares are most often in the form of warrants is a legal document certifying that the bearer has the right to own shares, designated in the order. Warrants usually come with a voucher that allows the bearer of the claim for dividends. Warrants are absolutely incredible.
5. The Redeemable Shares
As the name implies, redeemable shares issued to the shareholder agree that the shares can be redeemed – redeemed by the company either after a certain period of time or on a certain date. The redeemable shares can vary according to which party, either the company or the shareholder entitled to exercise redemption of shares of the company for the provision.
6. Non-Voting Shares
These shares, as ordinary shares except that they do not have the right to vote. This type of stock typically issued to employees so that part of the payment can be paid in the form of dividends. This agreement generally provides tax benefits for company and employees.