Public Companies- Mahe
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S.MAHENDRAN 07MBA059
PUBLIC COMPANY According to section 3(i)(iv) of the companies act, 1956 which was amended in 2000, a public company means a company which (i) is not a private company (ii) has a minimum paid-up capital of five lakh rupees (iii) is a private company which is a subsidiary of a public company
CHARACTERISTICS OF A PUBLIC COMPANY 1. Number of members: • minimum of seven • Maximum is unlimited 2. Paid-up capital: • Should have a minimum paid-up capital of 5 lakhs 3. Restriction on name: • A public company should have the word ‘Limited’ 4. Commencement of business: • only after certificate of commencement of business 5. Invitation to public: • by issuing prospectus may invite public to subscribe to its shares
6. Transferability of shares: • no restriction on transferability of shares 7. Number of directors: • At least 3 directors 8. Statutory meeting: • Should hold a statutory meeting and file a report with the Registrar 9. Quorum: • The quorum for a meeting is 5 members
CONVERSION OF A PRIVATE COMPANY INTO A PUBLIC COMPANY A. Conversion by default: Default in complying to certain privilege and exemptions Order of relief given by central Govt.
E. Conversion by choice: By deleting from its article the requirements of sec 3(i) (iii) by passing special resolution
THANK YOU
PUBLIC COMPANY According to section 3(i)(iv) of the companies act, 1956 which was amended in 2000, a public company means a company which (i) is not a private company (ii) has a minimum paid-up capital of five lakh rupees (iii) is a private company which is a subsidiary of a public company
CHARACTERISTICS OF A PUBLIC COMPANY 1. Number of members: • minimum of seven • Maximum is unlimited 2. Paid-up capital: • Should have a minimum paid-up capital of 5 lakhs 3. Restriction on name: • A public company should have the word ‘Limited’ 4. Commencement of business: • only after certificate of commencement of business 5. Invitation to public: • by issuing prospectus may invite public to subscribe to its shares
6. Transferability of shares: • no restriction on transferability of shares 7. Number of directors: • At least 3 directors 8. Statutory meeting: • Should hold a statutory meeting and file a report with the Registrar 9. Quorum: • The quorum for a meeting is 5 members
CONVERSION OF A PRIVATE COMPANY INTO A PUBLIC COMPANY A. Conversion by default: Default in complying to certain privilege and exemptions Order of relief given by central Govt.
E. Conversion by choice: By deleting from its article the requirements of sec 3(i) (iii) by passing special resolution
THANK YOU
