Public Limited Company: Companies Act, 2013

A public limited company is a type of business structure that is registered under the Companies Act, 2013, and allows for the sale of shares to the public. Here is a comprehensive guide to the Companies Act, 2013, as it pertains to public limited companies, including their subsections:

1. Minimum Requirements: To form a public limited company, you need to have a minimum of three directors and seven shareholders. There is no limit on the maximum number of shareholders or directors.

2. Name Reservation: The process of name reservation for a public limited company is the same as that for a private limited company.

3. Incorporation: The incorporation process for a public limited company is the same as that for a private limited company, with the addition of the requirement to file a prospectus or statement in lieu of prospectus with the ROC.

4. Authorized and Paid-up Capital: The authorized capital and paid-up capital requirements for a public limited company are higher than those for a private limited company. The authorized capital must be at least Rs. 5 lakhs, and the paid-up capital must be at least Rs. 5 lakhs.

5. Prospectus: A prospectus is a legal document that provides information about the company and its shares to the public. It must be filed with the ROC before the company can offer its shares to the public. If the company does not offer its shares to the public, it must file a statement in lieu of prospectus.

6. Annual Compliance: The annual compliance requirements for a public limited company are the same as those for a private limited company.

7. Meetings: The meeting requirements for a public limited company are the same as those for a private limited company.

8. Shares and Shareholders: Public limited companies can issue both equity and preference shares to their shareholders. The shares can be freely transferred, subject to any restrictions mentioned in the Articles of Association. The shareholders have limited liability, meaning that their liability is limited to the amount of their investment in the company.

9. Directors: The requirements for directors of a public limited company are the same as those for a private limited company.

10. Sub-sections: The Companies Act, 2013, provides for two sub-sections of public limited companies: listed and unlisted. Listed public limited companies are those whose shares are listed on a stock exchange, while unlisted public limited companies are those whose shares are not listed on a stock exchange.

In conclusion, the Companies Act, 2013, lays down the legal framework for public limited companies in India. The Act provides for the incorporation, management, and compliance of public limited companies, and ensures that they comply with the regulatory requirements. As a public limited company, it is essential to comply with the provisions of the Act to avoid penalties and legal liabilities.