Types of public companies

A public company is any company that is not registered as a proprietary company. There are four types of public company, with the type determined by the liability of members to contribute to the company's debts in a winding up where there is a deficiency of assets against liabilities.

The four types are:

• • a company limited by shares;
• • a company unlimited with share capital;
• • a company limited by guarantee; and
• • a no liability company.

Whilst it is important to select the most suitable type when the company is registered, a company can change its type as the company and its operations change. Often a proprietary company limited by shares will want to change its type to a public company limited by shares to enable it to make offers that require disclosure. Also, often a public company limited by shares will change its type to a proprietary company when access to external debt and equity is no longer needed (for example, after a privatisation).

See Types of public companies.