According to Section 3(1)(iv) of the Act, 'Public Company' means a company which (a) is not a private company; (b) has a minimum paid up capital of Rs. 5 Lakhs or such higher paid-up capital; and (c) is a private company which is a subsidiary of a company which is not a private company. After Companies (Amendment) Act, 2000, a public company can not be registered with a capital of less than Rs. 5 Lakhs. Public companies invite the public at large to participate and subscribe for the share in, or debentures of, the company and there are no restrictions on transfer of shares.
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