4.2.2.2.1 Public companies limited by shares

CA 2006 section 4 (2) defines a public company as a company whose certificate of incorporation states that it is a public company and which has complied with the provisions of the Act as to registration or re-registration as a public company. There is a minimum share capital requirement, which is currently set at £50,000.1 Only a public company may offer shares to the public, either held by the public or listed on a stock exchange, but it is not compulsory for such a company to offer its shares to the public.2 This is different from the public companies in the US, which, as such, must be listed companies. For this reason, a public company is subject to stricter regulation Unlike the Chinese public companies, public companies in the UK do not require a two-tier management structure. No supervisory board is required, but the board of directors consists of executive and non-executive directors.