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.
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Answer:
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.
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Explanation:
There is no limit on the maximum number of member of a public company, ... A public company must have at least three directors whereas a private company may have two directors
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