[box]Overview of Public Limited Company[/box]
The Company defined under Companies Act, 1956 is a public company which-
1.Is not a private company;
2.has a minimum paid-up capital of Rs. 5 lakhs or such higher capital as may be prescribed;
3.Is a private company but subsidiary of a public company.
Private Companies deemed to be Public Companies
Certain private companies are deemed to be public companies by virtue of section 43 A, viz.-
1.When 25% or more of its paid-up share capital is held by one or more body corporate;
2.When its average annual turnover (during the last 3 years) exceeds Rs. 25 crores;
3.When it holds 25% or more of the paid-up share capital of Public Company; or
4.When it accepts or renews deposits from the public after making an invitation by an advertisement.
However, as per the Companies (Amendment) Act, 2000 effective from 13th December 2000 such deemed public limited companies are required to intimate to the Registrar to revert back to their original status as a private limited company.
The Company defined under Companies Act, 1956 is a public company which-
1.Is not a private company;
2.has a minimum paid-up capital of Rs. 5 lakhs or such higher capital as may be prescribed;
3.Is a private company but subsidiary of a public company.
Private Companies deemed to be Public Companies
Certain private companies are deemed to be public companies by virtue of section 43 A, viz.-
1.When 25% or more of its paid-up share capital is held by one or more body corporate;
2.When its average annual turnover (during the last 3 years) exceeds Rs. 25 crores;
3.When it holds 25% or more of the paid-up share capital of Public Company; or
4.When it accepts or renews deposits from the public after making an invitation by an advertisement.
However, as per the Companies (Amendment) Act, 2000 effective from 13th December 2000 such deemed public limited companies are required to intimate to the Registrar to revert back to their original status as a private limited company.