Companies Act 2014 section 1011

Capacity of a PLC

Section 1011 establishes that a public limited company (PLC) may only carry out activities that fall within the objects stated in its memorandum of association, unlike a private company limited by shares (LTD) which enjoys unlimited capacity.

• A PLC has the capacity to do any act or thing stated in the objects set out in its memorandum of association.
• An "object" includes anything described in the memorandum as a power to act, regardless of whether the word "power" is actually used.
• Where an object is listed but no further detail is given, the PLC may do anything that appears requisite, advantageous, or incidental to achieving that object, provided it does not contravene any legislation.
• The unlimited capacity provisions that apply to a private company limited by shares (LTD) do not apply to a PLC.