Public limited company is the largest form of business in India. A public limited company can be listed on stock exchanges and can thus invite funds from public. Also, there is no restriction as to the maximum no. Of shareholders in a public limited company.

What is public limited

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.