An unlisted public company is a
public company 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 the ...
. 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 capita ...
and a minimum number of
shareholders. Each stock exchange has its own
listing requirements
In corporate finance, a listing refers to the company's shares being on the list (or board) of stock that are officially traded on a stock exchange. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, su ...
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, including because it is too small to qualify for a stock exchange listing, does not seek public investors,
What is an Unlisted Public Company?
Company Planners, accessed 6 October 2010 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 organizations in the jurisdiction they operate under.
A statistical business register has a different purpose than a company register. While a commercial/trade register serves a purpose of protection, accounta ...
.
In Australia, a public company, whether listed or not, is required to prepare an annual report that includes a directors' report, financial report, 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 service in order for the user to make decisions ...
. 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 (or 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. Laws in many ...
. 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.
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