No

Private Company

Public Company


1

A private Company means a Company which by its Articles
(a) Restricts the right to transfer its shares, if any
(b) Limits the numbers of its members (not including its  employees) to fifty;
(c)  Prohibits any invitation to the public to subscribe for any shares in or debentures of the Company.    


A Public Company means a Company which is not a Private Company.

2

Minimum number of Members :

             The Minimum number of persons required to form a Private Company is Two.
     


Minimum number of Members :

        The Minimum number of persons required to form a Public Company is Seven.
      



3

Maximum Member:

Maximum Number in a Private Company is fifty. 

Maximum Member:

In the case of Public Company, there is no restriction on the maximum number of members.



4

Number of directors :

      In a Private Company must have at least two directors
    

Number of directors

In a Public Company, there must have at least three Directors.

5

Restrictions on the appointment of directors:

In a Private Company, there is no restrictions on the on appointment of directors 




Restrictions on the appointment of directors:

In the case of Public Company, the directors must files with the Registrar a consent to act as a director or sign the memorandum of association or enter into a contract for their qualification shares. 


6

Restriction on the invitation to subscribe for shares:

   A private Company by its Articles prohibits any invitation to the public to subscribe to any the shares in or debenture of, the company.




Restriction on the invitation to subscribe for shares:

          A Public Company invites the general public to subscribe for the shares in and the debenture of the company.


7

Transferability of  Shares :

        In a Private Company, right to transfer shares is restricted by the Articles.


Transferability of  Shares :

  In a Public Company, the shares are freely Transferable.

8

Special Privileges :

 A private Company enjoys some special privileges.  


Special Privileges :

A Public Company enjoys no such Privileges.

9

Quorum:

   For the General meetings of Private Company quorum required is two


Quorum:

 In the case of Public Company, for the General meetings of a public company quorum required is Five.


10

Managerial Remuneration:

No restrictions apply to a Private Company as like Public Company.


Managerial Remuneration

The managerial remuneration in a public company cannot exceed 11% of the Net profit.





0 comments:

Post a Comment

See Also..