Question

distinguish between private company and public company on the basis of members and paid up capital​

Answer 1

Answer:

following is different

1Minimum Paid-up Capital- A company to be incorporated as a Private Company must have a minimum paid-up capital of Rs. 1, 00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5, 00,000.

2. Minimum Number of Members- Minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members.

3. Maximum Number of Members- Maximum number of members in a Private Company is restricted to 50, there is no restriction of maximum number of members in a Public Company.

4. Transferability of Shares- There is complete restriction on the trans­ferability of the shares of a Private Company through its Articles of Association, whereas there is no restriction on the transferability of the shares of a Public Company.