Sponsor Area
Forms Of Business Organization
Question
What do you understand by a Public Company?
Solution
A Public Company mans a company which
(a) has a minimum paid-up capital of Rs. 5 lakhs or a higher amount which may be prescribed from time-to-time;
(b) has a minimum of 7 members and no limit on maximum members;
(a) has a minimum paid-up capital of Rs. 5 lakhs or a higher amount which may be prescribed from time-to-time;
(b) has a minimum of 7 members and no limit on maximum members;
(c) has no restriction on transfer of shares; and
(d) is not prohibited from inviting the public to subscribe to its share
capital or public deposits.
- A private company which is a subsidiary of a public company is also treated as a public company.