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Doubt on listed comapnies

Bhupesh (student) (353 Points)

26 April 2009

Is listed companies are private company or public company. And is public company and govt. company is one and the same.

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Riyaz Khan (CA CS (Exec) MBA (Fin) Asst. General Manager-SEBI Internal Auditor-British Certifications Inc.) (1315 Points)
Replied 26 April 2009

No Brother, Both Pvt and Public Co. can be listed. Listed means whose shares are listed on Recognised Stock Exchanges in India like BSE / NSE.

Abt. Public And Govt. Companies it is imp to note that both are different. Public Co. is Defined u/s 4 of Companies Act whereas Govt co is defined u/s 512 of Co. Act, 1956. It is necessary to hold at least 51 % shares by the Govt to make a Company as Govt Co. I think now it is clear....

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Lakshmi C M (Asst Company Secretary) (23 Points)
Replied 28 April 2009

Only Shares of Public Limited Company shall be listed. Normally, private limited companies are closely held companies whose shares are not easily transferable. Therefore a private company has to be converted into a public company to be listed. In the case of Private Company, Sec 3(iii)(b) of the Companies Act restricts the number of its members to 50. The shares of listed are widely held and are traded in the Stock Exchanges.

triumph-CMA (Chartered Accountant) (503 Points)
Replied 01 May 2009

Dear Sir There is strict restriction on Private company that it can not transfer its shares. So a Private company is not permitted to transfer shares. Therefore a public company isto be listed. Listing is required in order to issue shares.

Public company is a company which is not a Private company where as a Govt. co. is a company in which the Govt. holds more than 50% shares as per sec. 512 ofCompanies Act, 1956.