A public limited company may be a voluntary association of members that are incorporated and, therefore, features a separate legal existence and therefore the liability of whose members is restricted.
Public limited companies are listed on the stock market where it’s share/stocks are traded publicly.
A Public Company may be a legal entity that has a separate identity from its shareholders/members. a corporation that will own property in its own name.
This means that a shareholder of a public limited company can easily transfer its shares to the general public. there's no restriction on transferring shares to the general public or inviting the general public to subscribe to shares to the general public.
The company can never come to an end. this suggests that the members/ directors/ shareholders may come and go, but the corporate never becomes non-existent. thanks to the death or disability, the corporate never dies. It continues till the corporate isn't closed or liquidated.
The liability of the shareholders/directors is restricted to the extent of the shares owned by them. The shareholders aren't liable personally just in case of losses or debts suffered by the corporate.
The minimum number of BOD required is 3 and the maximum is 12. they're elected by shareholders within the Annual General Meeting.
In the name of the general public company, the word “LTD” is going to be prefixed at the top of the name.
In the case of the public company, the number of directors is often a minimum of 3 and the maximum is often as many. there's no above limit.
They must only possess the Director number (DIN), which is issued by the Ministry of Corporate Affairs (MCA).
The registration of a public Limited company can issue a prospectus for inviting the general public to subscribe to its shares.
The prospectus is that the statement comprising the detailed information about the corporate and therefore the number of shares invited by the corporate therein particular IPO or subsequent listing.
The minimum number of members within the public company required is 7 and for max, there's no limit.
Advantages of Public Limited company
A public Limited company may be a sort of business that operates as a separate legal entity from its owners. it's formed and owned by shareholders. Shares of a Public Limited company are listed and traded at a stock market freely. The composition of the board of directors is about the call at the company’s articles of association.
Public limited companies enjoy an increased ability to boost capital since they will issue shares to the general public through the stock exchange.
