Question

state the different between private and public company in term of authorized share capital​

Answer 1

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Answer 2

Answer:

Explanation:

private company

A private company cannot offer its share to the general public as it is restricted, in a private company the shares are privately held by the members or investors. The private company the suffix after its name Private Limited (PVT LTD), the main advantage of a private company is they don’t need to disclose their financials to the general public. The public company is only answerable to its members/investors only.

public company

A public company under the companies act 2013  means a company that is listed on a stock exchange and can sell its securities to the general public. To become a public company; the company needs to offer an IPO to the public. Publicly listed company means their shareholders can sell securities freely on a stock exchange. A public company needs to disclose its annual report to all the stakeholders.  A public company can expand its business by issuing more shares to the general public.