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.
Answers
Ans: 1. The no.of members in a private company is according to the owner of the firm and the need of labour for the nature of the job. But in a public company its according to the law. This is because postings are to be given to members keeping in mind their caste i.e.,if their from a lower caste they are supposed to be given their seats first and if that person is a widow or a divorced person he/she is to be given the posting first.
2. The name of a private firm would be in a way to attract or in a way used to mesmerise people. But a public firms name would be either related to the product or it would be related to some great people who is known by all.
4. The invitation to public by a private firm would be in such a way that the would be able to get some profit from them. But in a public firm they make sure that the invitation helps the public to understand their need and would be able to seek all their rights from the government as per the constitution of India.
A private company is a closely held one and requires at least two or more persons, for its formation. On the other hand, a public company is owned and traded publicly. It requires 7 or more persons for its set up. There are vast differences between Pvt Ltd. and Public Ltd Company.