What is a Public Limited Company?

This write-up discusses the meaning, process and documents required for incorporation of a Public Limited Company in India. It includes the discussion on the eligibility of Directors and highlights the pros and cons of a Public Limited Company.

M/S. Southern Mica Products Ltd. Versus. Mr. V. Nagarjan, Pcs (2017) Scc Online Nclt 11062.

This case deals with the process by which a company can change its status. This means that the company will now need to follow all the guidelines in its Memorandum of association and Article of Association that are applicable on the Private Limited companies. This will also mean that the company would now need to roll out its share or debenture applications, if it wishes to, as per the guidelines that are applicable to Private industries. It would have to maintain the capital and assets as required by a private limited company under the Companies act, 2013.

Bhagwati Developers v. Peerless General Finance and Investment Co. (2005) 69 CLA 288 (SC)

The case analyses the scope of issuing bonus shares out of the Revaluation Reserve of a firm if the Article of Association permits. It doing so it discusses with the provisions laid down under the Companies Act, on issue of Bonus Shares. As per the provisions laid down by the Companies Act, A company is authorized by law to issue fully paid-up bonus shares to its members out of Free Reserves, Securities Premium Account or Capital Redemption Reserve Account.

Lagunas Nitrate Co v. Lagunas Syndicate, (1889) 2 Ch. 392.

This Case establishes the point that acting as the director of any corporation does not make one liable for unforeseen mistakes or mistakes made while acting in the best interest of the firm. If a person undertakes an action believing it to be in the best interests of the firm, after exercising due diligence the action cannot be recorded as misrepresentation or breach of trust.

Board of Directors: Composition and Committees under The Board

This article is divided into three parts. The first part deals with the meaning and types of Directors of Companies. The second part deals with the roles and composition of Board of directors. The third pard explains the composition, remuneration of Committees of Board of Directors.

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