Unlisted public company: Difference between revisions

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An unlisted public company is a public company, which is a company that can have an unlimited number of shareholders to raise capital for any commercial venture, but which is not listed on any stock exchange. A company may not be listed on a stock exchange for a number of reasons, including because they are too small to qualify for a stock exchange listing, and do not usually advertise for investors,^[1] or because there are too few shareholders for a listing. However, unlisted public companies tend to be larger than companies limited by guarantee.^[2]

Unlisted public companies are more likely to engage in profit maximising behavior as their share capital structure makes it very easy to give its members financial returns.^[2]

In Australia, unlisted public companies are required to prepare an annual report that includes a directors' report, financial report, and an auditor's report. The report is to be distributed to shareholders 21 days before an annual general meeting or four months after the end of the financial year. These rules are in place because members of the public who have invested in such companies are not always in a position to get information about the companies performance and so would not be able to monitor their investment and determine the return on their investment.^[2]

References

^ What is an Unlisted Public Company?, Company Planners, accessed 6 October 2010
^ ^a ^b ^c The Treasury (June 2007). "Financial Reporting by Unlisted Public Companies" (PDF). Australian Government. Retrieved 6 December 2012.

Other sources

Risks of investing in an unlisted company, Financial Express, 06 Nov 2005, access date 6 October 2010.

[1] What is an Unlisted Public Company?, Company Planners, accessed 6 October 2010

[OZ-2] The Treasury (June 2007). "Financial Reporting by Unlisted Public Companies" (PDF). Australian Government. Retrieved 6 December 2012.

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+{{Use dmy dates|date=January 2011}}
-A '''publicly unlisted company''' is a [[company]] that can have an unlimited number of [[shareholders]] to raise capital for any commercial venture. Companies which are not listed publicly are more likely to engage in profit maximising behavior as their share capital structure makes it very easy to give its members financial returns.<ref name="OZ">{{cite web |url=http://archive.treasury.gov.au/documents/1269/PDF/Discussion_paper_Financial_Reporting_by_Unlisted_Public_Companies.pdf |title=Financial Reporting by Unlisted Public Companies |author=The Treasury |date=June 2007 |work= |publisher=Australian Government |accessdate=6 December 2012}}</ref> Unlisted companies are usually too small to qualify for a stock exchange listing, and do not usually advertise for investors.<ref>[http://www.companyplanners.com.au/faqs/unlisted.shtml What is an Unlisted Public Company?], Company Planners, accessed 6 October 2010</ref> However they tend to be larger than companies limited by guarantee.<ref name="OZ"/>
+An '''unlisted public company''' is a [[public company]], which is a company that can have an unlimited number of [[shareholders]] to raise capital for any commercial venture, but which is not listed on any stock exchange. A company may not be listed on a stock exchange for a number of reasons, including because they are too small to qualify for a stock exchange listing, and do not usually advertise for investors,<ref>[http://www.companyplanners.com.au/faqs/unlisted.shtml What is an Unlisted Public Company?], Company Planners, accessed 6 October 2010</ref> or because there are too few shareholders for a listing. However, unlisted public companies tend to be larger than companies limited by guarantee.<ref name="OZ"/>
+Unlisted public companies are more likely to engage in profit maximising behavior as their share capital structure makes it very easy to give its members financial returns.<ref name="OZ">{{cite web |url=http://archive.treasury.gov.au/documents/1269/PDF/Discussion_paper_Financial_Reporting_by_Unlisted_Public_Companies.pdf |title=Financial Reporting by Unlisted Public Companies |author=The Treasury |date=June 2007 |work= |publisher=Australian Government |accessdate=6 December 2012}}</ref>
-In [[Australia]], companies not listed publicly are required to prepare an annual report that includes a directors' report, [[financial report]], and an [[auditor's report]].  The report is to be distributed to its shareholders 21 days before its annual general meeting or four months after the end of the [[financial year]]. This regulation is in place because members of the public who have invested in such companies are not always in a position to get information about the companies performance and so would not be able to monitor their investment and determine the return on their investment.<ref name="OZ"/>
+In [[Australia]], unlisted public companies are required to prepare an annual report that includes a directors' report, [[financial report]], and an [[auditor's report]].  The report is to be distributed to shareholders 21 days before an annual general meeting or four months after the end of the [[financial year]]. These rules are in place because members of the public who have invested in such companies are not always in a position to get information about the companies performance and so would not be able to monitor their investment and determine the return on their investment.<ref name="OZ"/>
 ==References==
 {{Reflist}}
+==Other sources==
 * [http://www.financialexpress.com/news/risks-of-investing-in-an-unlisted-company/157353/0 Risks of investing in an unlisted company], Financial Express, 06 Nov 2005, access date 6 October 2010.
-{{Use dmy dates|date=January 2011}}
 {{DEFAULTSORT:Publicly Unlisted Company}}