Question:
"Vindhya Publications Pvt. Ltd." has been operating successfully for several years. Due to increasing demand and expansion plans across the country, the management is planning to convert it into a public company so that it can raise funds from the general public.
Question:
List any three features of a Public Company.
"Vindhya Publications Pvt. Ltd." has been operating successfully for several years. Due to increasing demand and expansion plans across the country, the management is planning to convert it into a public company so that it can raise funds from the general public.
Question:
List any three features of a Public Company.
Question:
List any three features of a Public Company.
Show Hint
Think of the legal position, the life and the liability of a public company.
Updated On: Nov 3, 2026
Show Solution
Verified By Collegedunia
Solution and Explanation
Step 1: Understand the question:
Vindhya Publications Pvt. Ltd. wants to become a public company so that it can raise funds from the general public.
We need to list any three features of a public company. A feature is a basic quality that sets this type of company apart.
Step 2: Feature 1: Separate legal entity:
A public company is created by law under the Companies Act, 2013, and gets its own legal identity.
The company can own property, sign contracts, borrow money and sue or be sued in its own name.
The owners (shareholders) and the company are two different persons in the eyes of law.
Step 3: Feature 2: Perpetual succession:
The life of a public company does not depend on its members.
If a shareholder dies, retires or sells the shares, the company goes on working.
Only a legal process called winding up can end its existence.
Step 4: Feature 3: Limited liability:
The liability of a shareholder is limited to the unpaid amount on the shares held by him or her.
If the company fails, personal property of the shareholders cannot be used to pay the debts beyond this amount.
This safety is one reason why the general public is ready to invest in such a company.
Step 5: Other features that could also be written:
Minimum 7 members and no upper limit, minimum 3 directors, free transfer of shares, and the right to invite the public to buy shares by issuing a prospectus.
Any three correct features earn full marks.
Final Answer:
Three features of a public company are separate legal entity, perpetual succession and limited liability. \[ \boxed{\text{Separate legal entity; perpetual succession; limited liability}} \]
Vindhya Publications Pvt. Ltd. wants to become a public company so that it can raise funds from the general public.
We need to list any three features of a public company. A feature is a basic quality that sets this type of company apart.
Step 2: Feature 1: Separate legal entity:
A public company is created by law under the Companies Act, 2013, and gets its own legal identity.
The company can own property, sign contracts, borrow money and sue or be sued in its own name.
The owners (shareholders) and the company are two different persons in the eyes of law.
Step 3: Feature 2: Perpetual succession:
The life of a public company does not depend on its members.
If a shareholder dies, retires or sells the shares, the company goes on working.
Only a legal process called winding up can end its existence.
Step 4: Feature 3: Limited liability:
The liability of a shareholder is limited to the unpaid amount on the shares held by him or her.
If the company fails, personal property of the shareholders cannot be used to pay the debts beyond this amount.
This safety is one reason why the general public is ready to invest in such a company.
Step 5: Other features that could also be written:
Minimum 7 members and no upper limit, minimum 3 directors, free transfer of shares, and the right to invite the public to buy shares by issuing a prospectus.
Any three correct features earn full marks.
Final Answer:
Three features of a public company are separate legal entity, perpetual succession and limited liability. \[ \boxed{\text{Separate legal entity; perpetual succession; limited liability}} \]
Was this answer helpful?
0
0
Top CBSE X Elements of Business Questions
- Sudha Publishing House was a Private Limited Company. The publishing business was growing by leaps and bounds. The demand was huge. It required huge investment to set up its branches and printing base all over the country. The board members were thinking to offer shares to the public to meet investment requirements.
On the basis of above case, answer the following questions - Sales promotion is important from the point of view of manufacturers because it...
- The Board of Directors of a joint stock company is elected by...
- Seema and Daya are two sisters who sell their domestic T.V. set at a profit. This is a/an...
- Earthquake comes under which type of risk?
View More Questions
Top CBSE X Private and Public company Questions
- Sudha Publishing House was a Private Limited Company. The publishing business was growing by leaps and bounds. The demand was huge. It required huge investment to set up its branches and printing base all over the country. The board members were thinking to offer shares to the public to meet investment requirements.
On the basis of above case, answer the following questions - Earthquake comes under which type of risk?
- Which of the broad categories of industries covers oil refinery and sugar mills?
- Jayant intends to start a business in the form of a company. But he has no idea about the company. Guide him about the following with reference to a company:
Perpetual succession
Common seal
Artificial person
Liability - Distinguish between Public company and Private company on the basis of:
(a) Number of Members
(b) Number of Directors
(c) Transfer of Shares
Top CBSE X Questions
- Read the following source carefully and answer the questions that follow:
Print Comes to India
From 1780, James Augustus Hickey began to edit the Bengal Gazette, a weekly maga zine that described itself as ‘a commercial paper open to all, but influenced by none’. So it was private English enterprise, proud of its independence from colonial influence, that began English printing in India. Hickey published a lot of advertisements, including those that related to the import and sale of slaves. But he also published a lot of gossip about the Company’s senior officials in India. Enraged by this, Governor-General War ren Hastings persecuted Hickey, and encouraged the publication of officially sanctioned newspapers that could counter the flow of information that damaged the image of the colonial government. By the close of the eighteenth century, a number of newspapers and journals appeared in print. There were Indians, too, who began to publish Indian news papers. The first to appear was the weekly Bengal Gazette, brought out by Gangadhar Bhattacharya, who was close to Raja Rammohan Roy. - Read the following source carefully and answer the questions that follow:
Loans from Cooperatives
Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their resources for coopera tion in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Coop erative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses. - More than three million carbon compounds have been discovered in the field of chemistry. The diversity of these compounds is due to the capacity of carbon atoms for bonding with one another as well as with other atoms. Most of the carbon compounds are poor conductors of electricity and have low melting and boiling points.
- Human digestive system is a tube running from mouth to anus. Its main function is to breakdown complex molecules present in the food which cannot be absorbed as such into smaller molecules. These molecules are absorbed across the walls of the tube and the absorbed food reaches each and every cell of the body where it is utilised for obtaining energy.
- A student has three convex lenses A, B, and C of different focal lengths. He wants to observe the images formed by these lenses on a screen by placing a candle flame at different distances as given in the following table:
Case No. Lens Focal Length Object Distance 1 \(A\) 50 cm 25 cm 2 B 20 cm 60 cm 3 C 15 cm 30 cm
View More Questions