Public Company [section 2(71) of the Companies Act, 2013]
As per Section 2(71), a public company means a company which:
(a) is not a private company; and
(b) has a minimum paid-up share capital, as may be prescribed.
Important Points On Public Company
- 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.
- Minimum numbers of Shareholders to form a public company is 7 and maximum - No limit.
- Minimum numbers of Directors to form a public company is 3.
- As per section 58(2), the securities or other interest of any member in a public company shall be freely transferable.