Public Limited Company

A Public Limited Company is formed by inviting investment from the public at large. It has a wide scope for the entrepreneur for expanding business throughout the world. This company is registered with Ministry of Corporate Affairs and having minimum shareholders of 7 numbers with no limit for maximum shareholders. However, the shareholders have limited liability and in no way personally liable for untoward event.

The company is managed by a Board of Directors and Audit Committee is formed to monitor and approve financial matters. As such it has a better control of its. The trading of the share is also possible under a public limited company through the stock exchange. Under this company, any person can become the shareholder of the company no matters where he lives and what is his identity the only thing he needs is that he should hold at least one share of the company to become its shareholder. People invest their funds and get the opportunity to earn a profit in the form of dividends and other different ways.

Features of a Public Limited Company

Shareholders: Minimum of 7 members are required to form a Public Limited Company. There is no upper limit of number of members of a Public Limited as per the provisions of the Companies Act, 2013.

Limited Liability: The members of a Public Limited Company have a limited liability. Thus, in case of loss arises in Company for any circumstances, the assets of the Company will be used for making payment. The personal, individual assets of the shareholders are not at risk. However, they are responsible for their illegal actions.

Paid-up capital: A minimum paid-up capital of Rs 5 lakh or such higher amount as prescribed under the act is required in a public limited company.

Prospectus: Before inviting to invest in the Company, a Public Company has to publish the Prospectus containing detailed statement of the company affairs. There is a requirement under the Act for Public Limited Companies to issue a prospectus which contains the affairs of the company.

Name: Name For all the Public Limited Companies, name is a must to use the word "Public Limited" after its name.