What defines the minimum capital requirement for a public limited company?

The minimum capital requirement for a public limited company is set at £50,000. This means that the company must issue shares that together are valued at this minimum amount in order to be officially recognized as a public limited company. This requirement serves to ensure that the company has a certain level of financial stability and credibility, which is important for attracting investors and for the effective functioning of the public market.

The rationale behind the £50,000 minimum is to provide a buffer against insolvency and to signal to potential investors that the company is serious about its public status. This amount must be fully paid up, which means that the money must be received by the company before the shares can be issued. This contrasts with other types of companies that have different regulations regarding capital requirements.

The other options relate to the structures and governance of the company but do not define the capital requirement. For instance, while having a minimum number of shareholders is necessary for certain types of companies, it does not pertain to the capital requirement specifically. Hence, the focus on the £50,000 minimum share capital is what correctly defines the financial obligation of a public limited company.