The main features of CLS and DAC private limited companies are outlined in the following table:
CLS
• Only requires one director • Must have the letters Ltd after its name
• Does not have to hold an annual general meeting (AGM)
• Cannot be a financial company i
An annual general meeting (AGM) is a gathering of company directors and shareholders that is held every year to discuss the business.
All private limited companies must be registered with the Companies Registration Office (CRO). The CRO will then issue the company with a Certificate of Incorporation, which allows the company to begin trading.
FEATURES OF A PUBLIC LIMITED COMPANY
A public limited company is a business whose shares can be traded on the stock exchange and bought by members of the general public.
i i
A public limited company is a business whose shares can be traded on the stock exchange and bought and sold by members of the general public.
The stock exchange is where shares in public limited companies are bought and sold.
A public limited company must have at least seven shareholders. There is no maximum number of shareholders.
A public limited company must have the letters ‘PLC’ after its name. For example, Glanbia PLC and Medtronic PLC.
All public limited companies must be registered with the Companies Registration Office (CRO).
A public limited company can raise large amounts of money by selling shares. However, they have no control over who will buy shares.
There are tax advantages to being a public limited company. For example, corporation tax is lower than PAYE rates.
225 DAC
• Requires at least two directors • Must have the letters DAC after its name • Must hold an AGM • Can be a financial company
