INTRODUCTIO N TO PUBLIC LIMITED COMPANY
A limited liability corporation is referred to legally as a public limited company. This indicates that the management and owners have limited responsibility under the public corporation. It has restricted iability and provides shares to the general public. Anyone may purchase the shares through an initial public offering or through trading on the stock market. Offerings like this help the business raise funds.
INTRODUCTION
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Limited Liability
Each shareholder only has a small amount of obligation. Contrary to partnerships & sole proprietorships, where the partners & business owners are jointly and numerously liable for the business's debts, a public limited company shareholder is not personally liable for any debts or loss of the company.
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SOME DISTINCT FEATURES OF PUBLIC LIMITED COMPANY
A public limited company must possess a minimum of three directors, according to Section 149 of the 2013 Companies Act. A firm is also limited to a maximum of 15 directors. However, a company may designate more than the permitted number of individuals by a special resolution.
SOME DISTINCT FEATURES OF PUBLIC LIMITED COMPANY
A public limited company must have at least 5 Lakh INR in paid-up capital or the highest amount permitted by law. Nevertheless, there is no set maximum capital amount.
Paid-Up Capital
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Name A public limited company must have at least 5 Lakh INR in paid-up capital or the highest amount permitted by law. Nevertheless, there is no set maximum capital amount.
Prospectus
SOME DISTINCT FEATURES OF PUBLIC LIMITED COMPANY
Public limited companies are required by the Act to publish a prospectus, which is an extensive summary of the company's affairs that is distributed to the general public. However, private imited companies are not covered by such clauses. This is so that private limited companies can't offer their shares for subscription to the general public.
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