Association of Taxation Technicians (ATT) Law CBE Practice Exam 2026 – Your All-In-One Guide to Exam Success!

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Which statement describes how public companies differ from private ones?

They require no directors

They must have a minimum issued share capital of £50,000, at least two directors and a company secretary

Public companies have stricter statutory requirements than private ones because they can raise money from the public and must meet governance standards to protect investors. The statement reflects those formal requirements: a public company must have a minimum issued share capital of £50,000, at least two directors, and a company secretary. This combination ensures there is sufficient capital to support the business and a governance framework with oversight.

The other ideas don’t fit because a public company does need directors, cannot be without a company secretary, and may be listed on a stock exchange, not forever excluded from listing.

They cannot have a company secretary

They are never listed on a stock exchange