Public limited company registration act
A public limited company has been defined in section 3 (2) (iv) to mean a company which-
(a) is not a private limited company
(b) The minimum paid-up capital of a public company which has five lakh rupees or such higher paid-up capital as may be prescribed.
(c) is a private limited company which is a subsidiary of a company which is not considered as a private limited company.
Public limited company requirement
As per amendments made in clauses (iii) and (iv) of sub-section (1) by the Act of 2000. The minimum paid-up capital of a private limited company must have Rs.1 lakh for their company registration.
The minimum paid-up capital of a public limited company must have a Rs.5 lakhs. This requirement can only be compiled with by the promoters/ subscribers to the memorandum by subscribing for the shares of the requisite paid-up share capital through subscription clause of the memorandum of association of the company as its registration.
Consequence of failure to effect increase :
An existing company having less than the required minimum paid-up share capital must. However, ensure that the paid-up capital is increased at least to the level of the prescribed sum of Rs.1 lakh or Rs.5 lakhs.
As the case may be, within 2 years from the date of the registration of the companies (Amendment) Act, 2000 which is 13-12-2000. In case of default, considered the provision has been made under sub-section (5) to the effect that such a company is consider as a defunct company under section 560. The company name shall be affect from the register of companies maintained by the Registrar.
In such an event, the Registrar is not required to comply with the procedure laid down in sub-sections(1), (2) and (3) of section 560. It may straight away strike off the company name from the register. Publish a notice of it in the Official Gazette in terms of s.560(5).
The company or any member or any creditor may, however, approach the Court for its revival under s.560(6) by producing evidence in support of enhancement of the paid-up share capital of the company.
It appears that the provision is considered to made in sub-section (5) may not be in public interest. It may cause hardship to the creditors of the company struck off. These conditions do not assign to a section 25 company or a company not having any share capital.
Under Section 12 of the Act, a public limited company registration with 7 or more persons associated for any lawful purpose. While a minimum number of persons is required to form a public limited company. There is no ceiling on the maximum number of its members.
Distinguishing features between a Public limited Company and a Private Company
The major distinguishing features between a Private limited Company and Public Limited Company are as under below :
(i) A minimum of 7 persons are required to form public company. Whereas in the case of private limited company only 2 persons are required for private limited company registration.
(ii) There is no ceiling on the number of members of the public limited company. Whereas in the case of private limited company. The number of members should not exceed 50 excluding. The members who are not past of present employees of the company. The join holders are counted as one member for this purpose.
(iii) The public limited company can invite the public to subscribe to its share capital. Whereas the private limited company is prohibited from doing so.
(iv) The shares of public limited company are freely conveyable in accordance with the Articles of the company. Whereas the transfer of shares of private limited company are subject to certain regulations.
(v) A public limited company is subject to all the regulatory provisions of the Companies Act 1956. Whereas a private limited company enjoys certain privileges and exemptions from some stipulation of the act.
(vi) A public limited company can accept/renew deposits from public. Whereas a private limited company cannot invite and/or assume deposits from public except from its members their directors or their relatives.
(vii) A private limited company can commence new business immediately after registration. But, a public limited company cannot do so. The both company registration has been registered their company name in the below offices such as Chennai, Bangalore,Kochi, Salem, Dharmapuri Dindigul and Nilgiris.