1. Definition and Legal Structure

• A Public Limited Company is an entity registered under the Companies Act, 2013.
  
• It has a separate legal identity from its shareholders and directors.
  
• The liability of shareholders is limited to the extent of their shareholding.
  
• It is allowed to raise capital from the public by issuing shares.
  
• It must have “Limited” as the last word in its name to indicate its status.
  

2. Shareholding and Capital Requirements

• A minimum of 7 shareholders is required to form a Public Limited Company.
  
• There is no cap on the maximum number of shareholders.
  
• The company must have at least 3 directors at all times.
  
• The minimum paid-up capital is ₹5 lakh, subject to government updates.
  
• Shares can be issued to the public, which increases fundraising capability.
  

3. Governance and Management

• The company must hold at least four Board Meetings in a financial year.
  
• It must conduct an Annual General Meeting (AGM) each year.
  
• Appointment and retirement of directors follow statutory procedures.
  
• The board is responsible for ensuring legal and financial compliance.
  
• Shareholders have voting rights in key company decisions.
  

4. Compliance and Regulatory Framework

• Must comply with SEBI guidelines if listed on a stock exchange.
  
• Annual filing of financial statements and returns with the ROC is mandatory.
  
• Must appoint a statutory auditor and conduct annual audits.
  
• Records of board meetings and shareholder resolutions must be maintained.
  
• Disclosure norms apply regarding director interests and financial dealings.
  

5. Advantages and Limitations

• Offers access to a large pool of investors and capital.
  
• Promotes credibility and trust among customers and investors.
  
• Shareholders benefit from limited liability protection.
  
• Subject to complex compliance procedures and regulatory oversight.
  
• Public trading of shares may lead to dilution of ownership control.