Question

Under what conditions a private company was deemed to be a public company?

Answer 1

A private company is deemed to be a public company under the following conditions:

1. At least 25% of the paid-up share capital of the public company is held by a private company.
2. At least 25% of the paid-up share capital of a private company is held by one or more corporate bodies.
3. Over the past three years, a private company’s average sales have exceeded ₹ 5 crore.
4. The private company accepts deposits from the public.