1. Register of Members (Section 88) Contains details of all shareholders, including their names, addresses, and shareholding. Records the date of becoming and ceasing to be a member. Separate entries must be maintained for equity and preference shareholders. Helps...
1. Assuring Capital Subscription in Public Offerings Underwriters play a key role during a Public Limited Company’s Initial Public Offering (IPO) or other public issues. They guarantee that a certain number of shares or debentures will be subscribed. If the public...
1. Board Approval and Appointment of Intermediaries The company must obtain approval from its Board of Directors to initiate the IPO process. It appoints key intermediaries such as a merchant banker (lead manager), underwriters, registrars, legal advisors, and...
1. Regulating Capital Market Activities SEBI (Securities and Exchange Board of India) regulates fundraising activities of Public Limited Companies that issue securities to the public. It governs Initial Public Offerings (IPOs), Follow-on Public Offerings (FPOs),...
1. Definition of a Prospectus A prospectus is a formal legal document issued by a Public Limited Company when it invites the public to subscribe to its shares or debentures. It is required under the Companies Act, 2013, and governed by SEBI regulations for listed...
1. Free Transferability of Shares Shares of a Public Limited Company are freely transferable unless restricted by law or internal agreements. This is a core feature that distinguishes it from private companies. Shareholders can sell or transfer their shares to any...
1. Definition of Perpetual Succession Perpetual succession means that a Public Limited Company continues to exist regardless of changes in its membership or management. The company is a separate legal entity, and its existence is not affected by the retirement,...
1. Definition of Limited Liability Limited liability means that the financial responsibility of shareholders is restricted only to the amount they have invested in the company. Shareholders are not personally liable for the company’s debts or losses beyond their share...
1. Eligibility of Foreign Nationals Yes, foreign nationals are allowed to become directors in a Public Limited Company in India. There is no restriction on nationality, provided the individual meets the legal criteria. They can be appointed as Executive,...
1. Government Filing Fees (Registrar of Companies - ROC) The fee is based on the authorized share capital of the company. For authorized capital up to ₹1,00,000: Nil ROC fee (only stamp duty applicable). ₹1,00,001 to ₹5,00,000: ₹1,000 ₹5,00,001 to ₹10,00,000: ₹2,000...