Definition of public company - 2(71) of companies act, 2013
This query is : Resolved
09 December 2014
Dear Experts,
After my Analysis of Section 2(71) of CA, 2013 which is reproduced as below,
2...
(71) “public company” means a company which—
(a) is not a private company;
(b) has a minimum paid-up share capital of five lakh rupees or such higher
paid-up 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 ;
it is nowhere mention regarding the minimum number of members for public company (i.e. seven).
Please comment on this. Whether it is a clerical error in Law or there is anything hidden or it is written anywhere else?
After my Analysis of Section 2(71) of CA, 2013 which is reproduced as below,
2...
(71) “public company” means a company which—
(a) is not a private company;
(b) has a minimum paid-up share capital of five lakh rupees or such higher
paid-up 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 ;
it is nowhere mention regarding the minimum number of members for public company (i.e. seven).
Please comment on this. Whether it is a clerical error in Law or there is anything hidden or it is written anywhere else?
09 December 2014
Hi Pankaj,
Please refer Section 3 (1)(a) of the Companies Act, 2013, which mentions that "A Company may be formed for any lawful purpose by (a) seven or more persons, where the company to be formed is a public company..........................."
Hence, Sec 2(71) and Sec.3(1)(a) both sections to be referred
Please refer Section 3 (1)(a) of the Companies Act, 2013, which mentions that "A Company may be formed for any lawful purpose by (a) seven or more persons, where the company to be formed is a public company..........................."
Hence, Sec 2(71) and Sec.3(1)(a) both sections to be referred
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