A private limited company or famously known as LTD is a privately held company. This implies that the business limits owner liability to its shares and limits number of shareholders to 50. It also restricts shareholders from trading shares publicly.
A Public Limited Company, legally known as PLC, is a publicly held company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed in the stock exchanges. PLC requires a minimum of 3 Directors as a prerequisite.
Never ending characteristic
A company incorporated under Companies act never dies. A company can, only be closed with the consent of shareholders or by the process given in Law.
Limited Liability Protection
The liability of members extends only to the contribution of the nominal value of the shares held and not paid by them. It has the words ‘Limited’ as part of its name.
No Criteria of minimum paid up capital
Requirement of minimum capital to start a public limited company has been dispensed with by the Ministry of corporate affairs.
A Public limited company hold the privilege of being separate from its directors and shareholders. Member and directors cannot claim the property vested in company’s name.
E-form MGT 14 – Special resolution for conversion of the company into a public company is to be filed with the following attachments:
1. Certified true copy of special resolution
2. Altered memorandum and articles of association (MOA/AOA)
3. Certified true copy of board resolution (optional in nature)
Notice of Extra Ordinary General Meeting (EGM) that is held to pass the board resolution which is the approval of Directors for conversion of a Private Limited Company to Public Limited Company
E-from INC 27 – Application for the conversion of Private Limited to Public Limited
1. Minutes of the Meeting where approval was given for conversion and altered Articles of Association
2. Altered Articles of Association
3. True copy of Board resolution (optional in nature)