Advantages / pros and disadvantages / cons of Public Company Limited By Shares in Singapore?

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