Public Company

 A Public Company is a company which is not a private company. According to Section 2(71) of the Companies Act, 2013, it has the following characteristics:

  • Transferability: Its shares are freely transferable.

  • Minimum Members: It must have at least 7 members (with no maximum limit).

  • Public Subscription: It can invite the public to subscribe to its securities (shares or debentures).

  • Subsidiary Rule: A private company which is a subsidiary of a public company is also deemed to be a public company under the Act.

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