List the various restrictions held on a private company. Distinguish between a public company and a private company on the basis of:
(i) Minimum number of members
(ii) name
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Answer:
Private Company is the one which is held under the ownership which is private.
Explanation:
Restrictions on the Private Company
1. The shares of private company are not traded on public exchanges.
2. Shares cannot be issued through the IPO (Initial Public Offerings).
3. Have restriction in transferring the shares.
Difference between Public and Private on the grounds on:
Public Company
1. Minimum Number of members required - 7
2. Name - It will be denoted by Limited Company
Private Company
1. Minimum Number of members required - 2
2. Name - It will be denoted by Pvt Limited Company
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