What is public company?
A public company means a company which is not a private company. It is also a company which is not a subsidiary of a private company.
The shares of a public limited company are freely transferable. The permission of the company or the consent of any member of the company is not necessary for the transfer of shares. However, the Articles of the company can prescribe the manner in which the transfer of shares will be made.
Explanation
The textbook directly defines a public company in negative terms — by what it is NOT. It is defined as a company that is not a private company and not a subsidiary of a private company. Additionally, the context mentions that public companies have freely transferable shares, which is a key characteristic distinguishing them from private companies.