12 October 2012
Section 617. DEFINITION OF "GOVERNMENT COMPANY" For the purposes of this Act, Government company means any company in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments and includes a company which is a subsidiary of a Government company as thus defined.
In terms of section 3(1)(iv) of the Companies Act, 1956 a public company means a company which is not a private company and has a minimum paid-up capital of five lakh rupees or such higher paid-up capital as may be prescribed. A private company which is subsidiary of a public company is also a public company.
•At least 7 persons are required to form a public company. •A prospectus or a statement in lieu thereof has to be filed with the Registrar of Companies before allotment of shares. •It has to obtain Certificate of Commencement of Business from the Registrar of Companies before it can commence business on incorporation. •It has to hold a statutory meeting of members and file a Statutory Report with the Registrar of Companies. •Any member of the public who is willing to pay the price may acquire its shares or debentures. •Its shares are easily transferable and since these can be quoted on a recognised stock exchange, their liquidity is enhanced. •It can have any number of members and it is easy for it to raise capital through public subscriptions. •It can obtain loans from financial instituations and banks. •It shall have at least three Directors
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