A public limited company (PLC) is a type of business structure that allows for the sale of shares to the public. This type of business structure has a long history, dating back to the Dutch East India Company (VOC) in the 17th century.
The VOC, also known as the United East India Company, was established in 1602 as a joint-stock company. This means that the company was owned by shareholders, who invested money in exchange for a share of the company’s profits. The VOC was granted a monopoly on Dutch trade with the East Indies and quickly became one of the most powerful and profitable companies in the world.
The success of the VOC led to the establishment of other joint-stock companies, such as the British East India Company, which was established in 1600. These companies were able to raise large amounts of capital, which allowed them to fund exploration, colonization and trade.
In the 18th century, the idea of a public limited company spread to Europe. The first public limited company in Europe was the Swedish East India Company, which was established in 1731. The company was able to raise capital by selling shares to the public, which allowed it to fund trade with Asia.
The Industrial Revolution of the 19th century led to the rise of large corporations, many of which were public limited companies. These companies were able to raise large amounts of capital by selling shares to the public, which allowed them to fund the construction of factories and the development of new technologies.
In the 20th century, the number of public limited companies continued to grow. Today, public limited companies are a common form of business structure, with many of the world’s largest companies being PLCs.
One of the key advantages of a public limited company is the ability to raise large amounts of capital by selling shares to the public. This allows PLCs to fund large-scale projects and expansion. Additionally, PLCs are also subject to strict regulations, which helps to protect the interests of shareholders and the public.
However, public limited companies also have their drawbacks. For example, PLCs are required to disclose financial information to the public, which can make them vulnerable to hostile takeovers. Additionally, PLCs are also subject to corporate governance rules, which can make it difficult for them to make quick decisions.
In modern day, PLCs are subject to more regulations and oversight, due to the potential harm to members of the public if they conduct themselves improperly,