Public companies can be registered limited by shares or limited by guarantee.
Shares are a unit of ownership providing the shareholder with equity in the company. Shares in a public company can be sold to the general public. Each share in a class of shares in a public company must have the same rights to dividends as each other. Public companies limited by shares are generally used by businesses seeking fundraising from the general public or by companies with over 50 shareholders (as they are not allowed to be private companies per ASIC’s rules).
Public companies limited by guarantee (or CLGs) do not have a share capital or shareholders; instead, the members act as guarantors. The members agree to pay a nominal amount in the event of the company's winding up, known as the members' guarantee. CLGs are used by organisations such as recreational clubs, cultural communities, and charitable organisations in Australia.
Patricia Holdings can help you set up your unlisted public company with shares, or limited by guarantee.
