Public Limited Company Definition Companies Act 2013
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The public limited company is preferred as it has a separate legal entity under the companies act 2013.
Public limited company definition companies act 2013. Such form of business has a wide legal capacity to own property and incur debts. Section 3 1 of the ca 2013 public company may be formed for any lawful purpose by 7 or more persons. All the provisions of the act are applicable to government companies unless otherwise specified. Section 149 1 of the ca 2013 every public company shall have minimum 3 director in its board.
Please refer section 3 1 a of the companies act 2013 which mentions that a company may be formed for any lawful purpose by a seven or more persons where the company to be formed is a public company hence sec 2 71 and sec 3 1 a both sections to be referred. No need to use word limited or private limited. While there is no limit on the number of members it is formed by the association of persons voluntarily with a minimum paid up capital of 5 lakh rupees. Government company subject to all provisions of the act unless specified otherwise.
A public limited company is a joint stock company. It is governed under the provisions of the indian companies act 2013.
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