Advantages of Public limited companies: OR
Reasons for choosing a public limited company:
- Continuity of existence
- Larger amount of capital
- Able to raise capital for expansion by selling additional shares
- Limited liability for shareholders
- Raising the capital through Public Issue
- Easy Transferability of shares
- Separate legal entity
- Easy to acquire other companies
- Pursue or gain new projects, new products or new markets
- Grow capital expenditure to support and enhance the business
- Acquire funds for research and development
Key Features to Regstered a Public Limited Company :
- Director : A minimum of three Directors are required, One of the directors must be resident of India i.e. in India not less than 182 in the previous calendar year.
- Member : Minimum number of member as shareholder is seven.
- Registered office address.
- Capital : The minimum share capital of Rs. 5 lakhs is required.
Eligibilty to be a director in a Public Company
- Director should have minimum age of 18 years.
- A foreigner or a non-resident Indian can become an executive or a non executive/independent director of Indian companies whether public.
