Brief note on a Public company

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A public company means a company which is not a private company. There must be at least seven people to form a public company. It is of the essence of a public company that its article do not contain provision restricting the number of its member of excluding generally transferred of its share to the public or prohibiting any invitation to the public to the subscribe for its share of debentures.

Generally speaking any member of the public may acquire shares in a public company on a payment of the share money. The article of a public company may, however, contain restriction on the issue or transfer of shares. The company remains a public company despite such restriction. Only the shares of public company are capable of being dealt in on a stock exchange of a company is public company unless it is clear from its constitution that it is a private company.

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