- A company who issue share for public and when public paid the amount of share then he will the share holder of that company.
- A company must have a minimum of seven members but there is no limit as regards the maximum number.
- The company collects its capital by the sale of its shares and those who buy the shares are called the members. The amount so collected is called the share capital.
- The shares of a company are freely transferable and that too without the prior consent of other shareholders or without subsequent notice to the company.
- The liability of a member of a company is limited to the face value of the shares he owns. Once he has paid the whole of the face value, he has no obligation to contribute anything to pay off the creditors of the company.
- The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. The power of decision making in a company is in the Board of Directors, and all policy decisions are taken at the Board level by the majority rule. This ensures a unity of direction in management.
- As a company is an independent legal person, its existence is not affected by the death, retirement or insolvency of any of its shareholders
Public Limited Company
Advantage of public limited company
The most obvious advantage of being a public limited company is the ability to raise share capital, particularly where the company is listed on a recognized exchange, its shares to the public and anyone is able to invest their money, the capital that can be raised is typically much larger than a private limited company. It’s also possible that having stock listed on an exchange could attract investment from hedge funds, mutual funds and other institutional traders. As the number of shareholders is quite large, the risk borne by each shareholder is considerably low. To be more precise the risk of each shareholder is limited to the face value of shares held by him
DocumentsThere is some forms which you got mca portal and filled it and then submitted after you got approvel from mca, and you company certificate.
- Pan Card
- Passport Size Photo
- Electricity Bill (Not Older Then 2 Months) & Rent/lease Agreement
- Voter ID Card, Aadhar Card
- Bank Statement With Proper Address (Not latest 2 Months)
- Your company registered under ROC.
- Increase your company goodwill