Distinguish Between – Private Company and Public Company

Distinguish  Between

Private Company and Public Company

HSC Board – Organization of Commerce and Management – Notes,  & Distinguish Between, difference between Private Company and Public Company, study notes, studies material, studies notes – according to the New Textbook.



Basis DifferencePrivate CompanyPublic Company
1.MeaningA private company is a company which by its articles restricts the right to transfer its shares, if any, limits the number of its members to 50.A public company means a company which is not a private company.
2.NameIt is compulsory to add the word ‘Private Limited’ after the name if the Private Company.It is compulsory to add the word ‘limited’ after the name of public company.
3.Transfer of ShareShares in private limited company are not transferable.Public company can invite public for issuing its shares and debentures.
4.Number of DirectorsIn a Private limited company a minimum number of 2 directors is essential.In a Public limited company a minimum number of 3 directors is essential.
5.Issue of ProspectusIt’s not compulsory to issue the prospectus and statement in lieu of prospectus.It’s compulsory to issue of prospectus and in the absence of prospectus to sent statement in lieu to the registrar.
6Minimum Capitalpaid-up capital minimum is one lakh rupeespaid up capital minimum  is five lakh rupees
7.MembersThe minimum numbers of members are 2 and maximum 50The minimum numbers of members are 7 and there is no maximum limit of members.

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