Virgin Group

Briefly explain how a public limited company differs from a private limited company. Private and public limited companies differ mainly in the distribution of ownership and control among shareholders, amount of legal requirements and the availability of shares. The original owners of a private limited company can retain more control, whereas control lies with the Board of Directors, elected annually by the shareholders, and original owners may or may not be a part of it. Shares of public limited companies are available for purchase for a wider range of shareholders, thus ownership is more diluted. They can have themselves listed on the stock exchange to sell more shares, or shareholders can apply for them. The shares of a private company are limited to a close group of friends, family or employees of the owners. Legal formalities and requirements are slightly greater for public limited companies. Public limited companies need to publish their reports and accounts annually for the public. Private companies need to do the same, only they don’t need to make it public. Discuss how Virgin stakeholders may be affected by the switch to becoming a public limited company. The switch of a company to a public limited from a private limited is definitely a massive one, especially with a company as diverse and huge as the Virgin Group. There are new opportunities and responsibilities lining up, and both internal and external stakeholders are affected greatly by such a switch. Internal stakeholders (employees, managers and shareholders) are affected