S.

MAHENDRAN 07MBA059

PUBLIC COMPANY According to section 3(i)(iv) of the companies act, 1956 which was amended in 2000, a public company means a company which (i) is not a private company (ii) has a minimum paid-up capital of five lakh rupees (iii) is a private company which is a subsidiary of a public company

CHARACTERISTICS OF A PUBLIC COMPANY
1. Number of members: • minimum of seven • Maximum is unlimited 2. Paid-up capital: • Should have a minimum paid-up capital of 5 lakhs 3. Restriction on name: • A public company should have the word ‘Limited’ 4. Commencement of business: • only after certificate of commencement of business 5. Invitation to public: • by issuing prospectus may invite public to subscribe to its shares

6. Transferability of shares: • no restriction on transferability of shares 7. Number of directors: • At least 3 directors 8. Statutory meeting: • Should hold a statutory meeting and file a report with the Registrar 9. Quorum: • The quorum for a meeting is 5 members

CONVERSION OF A PRIVATE COMPANY INTO A PUBLIC COMPANY
A. Conversion by default:  Default in complying to certain privilege and exemptions  Order of relief given by central Govt.

E. Conversion by choice:  By deleting from its article the requirements of sec 3(i) (iii) by passing special resolution

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