Which of the following statements is true for a public company?

A) It must follow the requirements of the Corporations Act.
B) It may be a company limited by guarantee.
C) It can issue either ordinary or preference shares.
D) All of the statements are true.

Question

Which of the following statements is true for a public company?

A)	It must follow the requirements of the Corporations Act.
B)	It may be a company limited by guarantee.
C)	It can issue either ordinary or preference shares.
D)	All of the statements are true.

Quizplus · Accepted Answer

All of the statements are true for a public company. As per the Corporations Act, a public company must follow various requirements, including having at least three directors, submitting annual reports, and holding annual general meetings. A public company can issue both ordinary and preference shares to raise capital. Additionally, a public company can be limited by guarantee as well, but this is less common than a company limited by shares.

Which of the Following Statements Is True for a Public