Question

Differentiate between private company and public company based on:
(i) Number of members
(ii) Name
(iii) Number of Directors
(iv) Invitation to public
(v) Transferability of shares
(vi) Issue of prospectors
(vii) Statutory meetings
(viii) Rights of giving loans to directors
(ix) Index of members
(x) Minimum shared up capital.
please answer all.

Answer 1

Answer:

Explanation:

public company                                                         private company

1. minimum 7 maximum no limit.                                minimum 2 maximum 50.

2.use only the word ‘Limited’ at the end.                 use words ‘private

                                                                                    limited’ at the end.

3. 3 directors .                                                             2 directors.

4. by issuing a prospectus.                                        cannot extend such

                                                                                    invitation .  

5. no restriction.                                                          restricted.

6. can issue through debenture.                               prohibited from issuing                                                      

                                                                                     prospectus.

7.must hold a statutory meeting                               no such obligations.

8. don't have the right to give the loan                    don't have the right to  

                                                                                    give the loan.

9. (refer first one answer)

10. Rs. 5 lakh.                                                             Rs.1 lakh .        

Answer 2

Explanation:

As against this, the private company can be started with minimum two members. The is no ceiling on the maximum number of members in a public company. Conversely, a private company can have a maximum of 200 members, subject to certain conditions.