Question

Maximum number of shareholders in a public company is:
(a) 10,000 (b) 15,000
(c) 20,000 (d) No limit

Answer 1

Answer:

Explanation:

In India there are two forms of companies i.e. Private Limited company  and Public Limited Company.

Under Section 2(71 ) of The Companies Act 2013 a public limited company is defined in the following manner:

• Public limited company must have a minimum of seven subscribers/shareholders but is not a means a  private company.

• Minimum Paid-Up Share Capital should be 5 Lakhs rupees.
• No restriction on the maximum number of shareholders
• No restriction on transerferability of shares
• Must have at least three directors
• It can only start it`s business once it obtains the certificate of commencement of business.
• Quorum under public limited company can only take place if there are five members are present.

   Hope this helps.