What is a Public Limited Company?
Public Limited Company is characterized by following features:
1. Minimum number of shareholders is 7 and there is no limit on maximum number of shareholders.
2. Minimum two numbers of directors are required to form a public limited company.
3. It can freely approach public in general to subscribe for its shares or debentures.
4. The shareholders of the Public Limited Company can freely transfer their shares to any other person.
5. A public limited company needs to have a minimum paid up share capital of Rs 5 lakhs or more as may be prescribed.
6. Every shareholder of public limited company has limited liability. They are only liable to the unpaid amount.