Q5 Analyse one reason why the directors of a public limited company might decide to convert the business back into a private limited company by buying back all of the shares. [5]
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Possible Structure:
[KN]
[AN]
[AN+]
[AN+]
[AN+]
5 Why directors of a PLC might decide to convert back into a Pvt Limited. [5]
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Sir Afzal Shad
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Re: 5 Why directors of a PLC might decide to convert back into a Pvt Limited. [5]
[KN]:to overcome the lack of ownership and control.
[AN]:The owner of a private limited company can take a long term planning of the business while major investors are only interested in short term gains.
[AN+]:conflict between owner and investor might occur.
[AN+]:the business might lose important investors.
[AN+]:financial state of the business might face downfall.
[AN]:The owner of a private limited company can take a long term planning of the business while major investors are only interested in short term gains.
[AN+]:conflict between owner and investor might occur.
[AN+]:the business might lose important investors.
[AN+]:financial state of the business might face downfall.