PUBLIC COMPANY

Section 3(1) of the Companies Act 1956 , defines a PUBLIC COMPANY as:

• A Company which is NOT a PRIVATE Company.
• Which has a minimum paid up capital of FIVE LAC RUPEES or such other higher paid up capital as may be prescribed.
• is a PRIVATE COMPANY which is a SUBSIDIARY of a Company which is not a private company.

POINTS TO REMEMBER:

1. In a case of a PRIVATE COMPANY there is no restriction in number of debenture holders but only invitation to Public is Prohibited. there must be a restriction to transfer of shares not prohibition
2. JOINT HOLDERS of the company will be counted as single members.