Question

Enumerate the features of a public company

Answer 1

Characteristics of Public Limited Company:

Members– To start a company, a minimum number of 7 members are required and no restrictions on maximum number of members as per the provisions of the Companies Act, 2013.

Limited Liability– The liability of each member or shareholders is limited.

Answer 2

Answer:

(i) Better access to capital – i.e. raising share capital from existing and new investors. (i) Liquidity – shareholders are able to buy and sell their shares (if they are quoted on a stock exchange.