An unlisted public company, also known as an unquoted public company, is a

public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

that is not listed on any

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

. This enables it to raise finance by the issuing and sale of shares to the public, such as through advertising, but without listing on an exchange. Though the criteria vary somewhat between jurisdictions, a public company is a company that is registered as such and generally has a minimum

share capital A corporation's share capital, commonly referred to as capital stock in the United States, is the portion of a corporation's equity that has been derived by the issue of shares in the corporation to a shareholder, usually for cash. ''Share ...

and a minimum number of

shareholder A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the ...

s. Each stock exchange has its own listing requirements which a company (or other entity) wishing to be listed must meet. Besides not qualifying to be listed, a public company may choose not to be listed on a stock exchange for a number of reasons such as avoiding the costs associated with being listed, it does not seek public investors, or there are too few shareholders for a listing. There is a cost to the listed entities, in the listing process and ongoing costs as well as in compliance costs such as the maintenance of a

company register A company register is a register of business organizations such as companies in the jurisdiction they operate under. Registration is normally mandated by the government of that jurisdiction. A company register serves a purpose of protection, acco ...

. In

Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...

, a public company, whether listed or not, is required to prepare an annual report that includes a directors' report,

financial report Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to un ...

, and an

auditor's report An auditor's report is a formal opinion, or disclaimer thereof, issued by either an internal auditor or an independent external auditor as a result of an internal or external audit, as an assurance services, assurance service in order for the use ...

. 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 A fiscal year (also known as a financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. La ...

. 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. In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

the regulations regarding unquoted public companies, and how they differ from private companies and publicly listed companies, is outlined in the

Companies Act 2006 The Companies Act 2006 (c. 46) is an act of the Parliament of the United Kingdom which forms the primary source of UK company law. The act was brought into force in stages, with the final provision being commenced on 1 October 2009. It largel ...

References

Other sources

Risks of investing in an unlisted company
''Financial Express'', 6 Nov 2005, access date 6 October 2010. {{DEFAULTSORT:Publicly Unlisted Company Types of business entity Stock market

See also

References

Other sources