What is a major disadvantage associated with public limited companies?

A significant disadvantage associated with public limited companies is the potential loss of control, as shares can be bought by anyone. When a company goes public, it offers its shares on a stock exchange, making them accessible to the general public. This means that ownership of the company can become fragmented, with numerous shareholders having stakes in the business, which can impact decision-making.

The original founders or existing management may find it more challenging to maintain control over the company's direction and operations, as they must consider the interests of a diverse group of shareholders. This can lead to conflicts of interest, especially if the new shareholders have differing priorities than those of the original owners.

Additionally, the pressure from shareholders to increase share value can push management to make short-term decisions rather than long-term strategic plans, potentially affecting the company's sustainability and growth. The influence of institutional investors and large shareholders can further complicate governance.

This loss of control is a key concern for many founders when considering the transition from private to public ownership.