PUBLIC COMPANY

 Public company [Section 2(71)]:

 “Public company” means a company which—

    (a) is not a private company;

    (b) has a minimum paid-up share capital, as may be prescribed:

Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles ; 

Public company - significant points

•  Is not a private company (Articles do not have the restricting clauses). 
•  Shares freely transferable. 
•  No minimum paid up capital requirement. 
•  Minimum number of members – 7. 
•  Maximum numbers of members – No limit. 
•  Subsidiary of a public company is deemed to be a public company. 

According to section 3(1)(a), a company may be formed for any lawful purpose by seven or more persons, where the company to be formed is to be a public company.