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ACCA Applied Skills · Corporate and Business Law (Global) · The formation and constitution of a company

Which feature distinguishes a public company from a private company limited by shares in most jurisdictions following the Global variant approach?

A public company may offer its shares to the general public, which a private company generally cannot do. Both types have separate legal personality and limited liability, so those features do not distinguish them.

  1. AA public company may offer its shares to the general publicCorrect
  2. BA public company has no limit on its members' liability
  3. CA public company is not a separate legal person

Explanation

A public company may offer its shares or debentures to the public, and it usually has stricter requirements such as minimum capital. Both public and private limited companies have limited liability and separate personality, so the other options are wrong.

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