Public Limited Company

A public limited company can offer shares to the general public and has no limit on the number of shareholders (minimum 7). Unlike private limited companies, shares are freely transferable, and the company can be listed on stock exchanges. It requires at least 3 directors and has more stringent compliance requirements.

A public limited company requires a minimum of 7 shareholders, 3 directors, minimum authorized capital of ₹5 lakh (though no minimum paid-up capital requirement exists now), and at least one director who is an Indian resident. It must also have 'Limited' as part of its name.

Yes, a public limited company can remain unlisted while still enjoying the benefits of public company structure. Unlisted public companies can have unlimited shareholders and freely transferable shares but are not required to comply with SEBI listing agreements or stock exchange regulations.

Advantages include ability to raise capital from the public through IPO, unlimited number of shareholders, freely transferable shares, enhanced credibility and brand recognition, ability to list on stock exchanges, and easier access to institutional funding and bank loans due to transparency requirements.

Public limited companies must hold statutory meetings, file annual returns with more detailed disclosures, maintain a share register, comply with SEBI regulations if listed, hold quarterly board meetings, conduct secretarial audits if applicable, and follow stricter corporate governance norms compared to private companies.

Conversion requires altering the Articles of Association to remove private company restrictions, passing a special resolution, increasing members to at least 7 and directors to 3, and filing forms with ROC. The company must also comply with minimum capital requirements and other public company norms.

Listing involves appointing merchant bankers, preparing a Draft Red Herring Prospectus (DRHP), obtaining SEBI approval, conducting roadshows, opening the IPO for subscription, allotting shares, and listing on exchanges like NSE and BSE. The process requires extensive documentation and compliance with SEBI ICDR regulations.

Directors must obtain DIN, cannot be disqualified under the Companies Act, must comply with insider trading regulations if the company is listed, have limits on the number of directorships (20 companies), and must meet residency requirements. Independent directors are mandatory for listed companies.

Yes, subject to conditions under Section 68 of the Companies Act, 2013, including board or shareholder approval depending on the buyback size, maximum buyback limit of 25% of paid-up capital and free reserves, and compliance with SEBI regulations if listed. Buybacks require specific filings with ROC.

Non-compliance can result in penalties on the company and officers in default, disqualification of directors, inability to file statutory forms, potential striking off by ROC, and for listed companies, penalties from SEBI and stock exchanges. Serious violations may lead to prosecution and imprisonment.