No
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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.
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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.
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Maximum Member:
In the case of Public Company, there is no restriction on the maximum number of members.
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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.
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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.
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7
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Transferability of Shares :
In a Private Company, right to transfer shares is restricted by the Articles.
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Transferability of Shares :
In a Public Company, the shares are freely Transferable.
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8
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Special Privileges :
A private Company enjoys some special privileges.
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Special Privileges :
A Public Company enjoys no such Privileges.
|
9
|
Quorum:
For the General meetings of Private Company quorum required is two
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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.
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