Mastergp
Verified member
There are many problem that one establishing a public limited liability company could face during the cause of running that business:
Lack of privacy:
Public limited liability company lack privacy because they are mandated by law to publish their annual audited accounts to the public. Thus makes it impossible for them to maintain secrecy or privacy.
Conflict of interest:
There is the possibility of conflict of interest among the shareholders, directors and staff, which may affect the efficiency if operations of the business.
Slow decision making:
Decision making is slow because of wider consultations and discussion in the management hierarchy.
Separation of owners from control:
The owners of business have little or no say in the affairs of the business,while the people at the helm of affairs who are not the owners may not put in their best.
Lack of flexibility:
The company can only carry on business provided for its object clause in the memorandum of association. It cannot venture into any other type of business.
Lack of privacy:
Public limited liability company lack privacy because they are mandated by law to publish their annual audited accounts to the public. Thus makes it impossible for them to maintain secrecy or privacy.
Conflict of interest:
There is the possibility of conflict of interest among the shareholders, directors and staff, which may affect the efficiency if operations of the business.
Slow decision making:
Decision making is slow because of wider consultations and discussion in the management hierarchy.
Separation of owners from control:
The owners of business have little or no say in the affairs of the business,while the people at the helm of affairs who are not the owners may not put in their best.
Lack of flexibility:
The company can only carry on business provided for its object clause in the memorandum of association. It cannot venture into any other type of business.
