Maybe you come across it on the street signs, read somewhere in the newspaper abbreviations like Ltd, J.S.C, or Plc, behind the names of companies, business organizations. Do you know the meaning of the acronyms and when you are confused, cannot distinguish what is a Ltd, a Plc. Read through this article, you will never again be embarrassed when you see the words again.
Do you know the English name of the company and the acronyms of the business models Ltd, J.S.C, or Plc?
What is LTD?
Ltd. or LLC. is an acronym for Limited Liability Company – a type of limited liability company. Small and medium business model. In the UK, 99% of companies follow the Ltd. model.
The reason is called Limited Liability Company (Limited) because capital contributors are only responsible for the debts and other property obligations of the enterprise within the amount of capital committed to contribute to the enterprise. Limited liability companies are not allowed to issue shares to raise capital.
As a closed company model, the transfer of contributed capital of members of a limited liability company is very limited. When wishing to transfer contributed capital, priority must be given to other members of the company first.
If only one organization or individual is the owner of the company, it will be called a one-member limited liability company. And a limited liability company cannot have more than 50 members.
The highest management organization of a limited liability company is the Board of members
What is JSC?
JSC stands for Joint Stock Comapany – a type of joint stock company, the minimum number of owners must be 3, be it legal entity or natural person. Capital contribution is divided into equal parts called shares and shareholders are called shareholders. Shareholders are issued a certificate of ownership called stock (stock). Only joint stock companies are allowed to issue shares. Therefore, the stock is a proof of ownership of a shareholder for a Joint Stock Company and the shareholder is a shareholder whose shares are expressed in shares.
The highest power in the joint stock company model belongs to the Annual General Meeting – the regular meeting of the collective of shareholders, which can be held annually. And in these conferences, people elected the Board of Directors (Board of Director) to run the company. One of the great advantages of the joint stock company model (Jsc.) Is that investors can transfer investment capital from one place to another, from one field to another easily through the form of transfer, purchase and sale of shares;
What is PLC?
PLC stands for Public Limited Company, or Public Company for Public Company model. These are companies that raise capital widely from the public through issuing securities (stocks, bonds) listed at stock exchange centers or unlisted securities. trading through securities brokerage institutions. Depending on the country, there may be more specific definitions of public companies. Specifically, in Vietnam, a joint stock company (Jsc.) Wishing to become a public company (Plc.) Must meet one of the following three conditions under the Securities Law:
– Implemented public offering of stocks.
– There are stocks listed at the Stock Exchange or the Securities Trading Center
– Having stocks owned by at least 100 investors, excluding professional securities investors and having a charter capital of VND 10 billion or more.
The authority that recognizes a public company in Vietnam as the State Securities Commission.
The characteristic of public companies is the involvement of external capital with many investors, thus setting corporate governance requirements as a differentiating factor from corporate management. The company must publicly report its activities to the public, so it is under the supervision of the public and society. In addition, the board of directors and board of directors must publicize the company’s management and administration activities. The Board of Directors must take care of the development of the company that will improve its technique, management, capital structure, otherwise the directors will be fired; Thus, public company activities have bound directors to comply with the law and run the company in accordance with the law of the company.
Normally, a joint stock company (Jsc.) Can only become a public company (Plc.) After the initial public offering (IPO).