Which of the following is required for a public limited company (PLC) to operate?

A public limited company (PLC) is required to have a minimum share capital of £50,000 in order to operate. This specific requirement is stipulated to ensure that the company has sufficient capital to meet its financial obligations and to gain credibility in the market. The share capital is divided into shares that can be sold to the public, allowing the company to raise funds for expansion and operations.

Having a minimum capital requirement protects shareholders by ensuring that a PLC has an established financial foundation before it begins trading publicly. This regulation helps to maintain a level of stability and trust in the company as it engages with potential investors and stakeholders.

Options involving a different minimum amount or the absence of a minimum capital do not adhere to the legal framework regulating public limited companies, which explicitly specifies the £50,000 threshold. Additionally, while shareholder approval is an important aspect of corporate governance, it is not a standalone requirement for the existence or operation of a PLC. A strong capital base is fundamental for the operational legitimacy of public limited companies.