Pros and Cons of Public Company Limited By Shares in Singapore?

What are the Pros and Cons of Singapore Public Company Limited By Shares?

What are the advantages and disadvantages of a Public Company Limited By Shares in Singapore?

What are the plus and minus of a Public Company Limited By Shares in Singapore?

What are the Pros and Cons of Singapore Public Company Limited By Shares?

What are the advantages and disadvantages of a Singapore Public Company Limited By Shares?

What are the plus and minus of a Singapore Public Company Limited By Shares?

Introduction

A public company limited by shares can have more than 50 shareholders. The company may raise capital by offering shares and debentures to the public. A public company must register a prospectus with the Monetary Authority of Singapore before making any public offer of shares and debentures.

It is having its own pros and cons as features.

Pros or Advantages

• It can raise capital by offering shares or debentures to the public.
• Can be listed on Singapore Stock Exchange (SGX)

Cons or Disadvantages

• There is a lack of confidentiality because public companies have to disclose financial information to the public
• Stringent regulation, such as Company Secretary’s qualifications and director’s age
• Listed Public companies also have to file reports with Singapore Stock Exchange regularly and comply with statutory requirements and exchange guidelines