Maximum number of shareholders in a public limited company

Asked by admin @ 17/08/2021 in Economy viewed by 305 People

Maximum number of shareholders in a public company is:

(a) 10,000 (b) 15,000
(c) 20,000 (d) No limit

Answered by admin @ 17/08/2021

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.

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