- Public company
(Govt. fees on actuals)
A public limited company is a voluntary association of members which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited. A company must have a minimum of seven members but there is no limit as regards the maximum number. The shares of a company are freely transferable and that too without the prior consent of other shareholders or without subsequent notice to the company. The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. This ensures separation of ownership from management. The power of decision making in a company is vested in the Board of Directors, and all policy decisions are taken at the Board level by the majority rule. This ensures a unity of direction in management.