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Public Limited Company



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“Public Limited Company”

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A Quick glance of Private Limited Company

A business structure which has minimum of 7 members, 3 directors and there is no limit of ceiling as maximum. Even that, post reaching of 500 members, the approval is required from "SEBI"(Securities and Exchange Board of India)

By expecting huge benefit in doing business and tends to extent as a large entity, the preference would be "Public Limited Company".
A separate legal entity and each shareholder is a part of it.

Minimum paid up capital required is Rs.5 lakh.

Can raise capital from the public by issuing shares through stock markets. The liability of a public company is limited. No shareholder is individually liable for the payment.

Stock can be acquired by anyone, either privately through IPO (Initial Public Offering) or via trades on the stock market.

Strictly regulated and is required to produce its real financial footing to its shareholders.

It is mandatory to call a statutory general meeting of members.

Can invite public for subscription of shares and debentures.

Ministry of Corporate Affairs is the governing body in India which regulates all Public Limited Companies in India.



Sections related to “Private Limited Company”
according to the Company’s Act, 2013

1. Section - 2(71)
2. Section - 2(72)
Section-2(71) “public company” means a company which—

(a) is not a private company;
(b) has a minimum paid-up share capital of five lakh rupees or such higher
paid-up capital, as may be prescribed:
Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles ;

Section 2(72)

“public financial institution” means—
(i) the Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956;
(ii) the Infrastructure Development Finance Company Limited, referred to
in clause (vi) of sub-section (1) of section 4A of the Companies Act, 1956 so repealed under section 465 of this Act;
(iii) specified company referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002;
(iv) institutions notified by the Central Government under sub-section (2) of section 4A of the Companies Act, 1956 so repealed under section 465 of this Act;
(v) such other institution as may be notified by the Central Government in consultation with the Reserve Bank of India:
Provided that no institution shall be so notified unless—
(A) it has been established or constituted by or under any Central or State Act; or
(B) not less than fifty-one per cent. of the paid-up share capital is held or controlled by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments;