Question

Mr. Sankalp started a ready-made garments business with his younger brother in the year 2002. The business was then promoted in the form of a Private Limited Company. Over the years their business has grown exponentially and they are now planning to convert it into a Public Limited Company. In the context of the above, what privileges will Mr. Sankalp have to forego if he converts his business into a Public Limited Company? (Any three)

Answer 1

Explanation:

1. There should be minimum 7 members.

2. Public is invited to be the shareholders.

3. For setting public limited company, the certificate of commencement should be there.