| Commentary

7.1 Formalities

| Commentary

7 Implications of going public

7.1 Formalities

The main advantage of going public is the ability to offer shares and debentures in the company to the public. However, this financial benefit comes at a price, in terms of greater formality in the running of the business (usually resulting in greater cost) and tighter restrictions on what can and cannot be done (particularly in relation to the share capital of the company)1. In relation to formalities, public companies must have at least two directors, whilst private companies need only one2. A public company cannot pass a single resolution appointing two or more

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