Definition of public company - 2(71) of companies act, 2013

This query is : Resolved

Pankaj (Querist)
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09 December 2014 Dear Experts,

After my Analysis of Section 2(71) of CA, 2013 which is reproduced as below,

2...
(71) “public company” means a company which—
(a) is not a private company;
(b) has a minimum paid-up share capital of five lakh rupees or such higher
paid-up capital, as may be prescribed:

Provided that a company which is a subsidiary of a company, not being a private
company, shall be deemed to be public company for the purposes of this Act even
where such subsidiary company continues to be a private company in its articles ;

it is nowhere mention regarding the minimum number of members for public company (i.e. seven).

Please comment on this. Whether it is a clerical error in Law or there is anything hidden or it is written anywhere else?

prathiba

prathiba (Expert)
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09 December 2014 Hi Pankaj,

Please refer Section 3 (1)(a) of the Companies Act, 2013, which mentions that "A Company may be formed for any lawful purpose by (a) seven or more persons, where the company to be formed is a public company..........................."

Hence, Sec 2(71) and Sec.3(1)(a) both sections to be referred

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Pankaj

Pankaj (Querist)
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09 December 2014 Thanks for your reply Ma'm.

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