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It's not a bad idea, but there are so many things that need considering. For example, you can't have more than 500 investors before you're required to declare your accounts. For a company that's in a growth period rather than a 'making shed loads of money that looks good to your average joe on the street' period, declaring your accounts isn't necessarily a good idea.

Secondly when you have shareholders you have to be seen to be doing things to increase value for your shareholders, and not necessarily for the long term. Raising money doesn't always coincide with making profit, so the companies would be exposing themselves to potentially hindering lawsuits (which would probably be dismissed but are definitely distracting).




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