Companies Act 2014 section 1004

Way of forming a PLC

Section 1004 sets out the ways in which a public limited company (PLC) may be formed and establishes the key characteristics of this company type, including limited liability for its members.

• A PLC can be formed for any lawful purpose by one or more persons subscribing to a constitution and following the registration requirements
• A PLC can also come into existence through re-registration of an existing body corporate, a merger of two or more bodies corporate, a division of a body corporate, or a cross-border conversion, merger or division under EU regulations
• Members' liability is limited to any amount unpaid on their shares, though they may have additional obligations under other provisions of the Companies Act
• The certificate of incorporation must expressly state that the company is a public limited company