what are the various privilages available to a private company over the public company
Answers
Answer:
The minimum number of members in a private company can be two only as against seven in a public company.
Private company need not keep an index of members.
Private company need not hold statutory meeting or file statutory report
Provisions as to proportion of directors liable to retire by rotation do not apply to a private company.
Director’s consent to act as such is not required.
Provisions regarding loans to directors do not apply.
Answer:
Both private and public companies are regulated by the provisions of the Companies act, 1956. However certain provisions of the Act do not apply to a private company. These are the privileges which a private company enjoys over the public company under the act. They are summarized below:
1) The minimum number of members in a private company can be two only as against seven in a public company.
2) Provisions regarding minimum subscription before allotment of shares do not apply to a private company.
3) A private company need not file a prospectus or a statement in lieu of prospectus with the Registrar
4) Further shares can be issued without passing special resolution obtaining Central Government’s approval and need not be offered other existing members
5) Private companies may issue share capital of such kinds in such forms and with such voting rights as it may think fit. However, its paid up capital shall not be less than rupees one lac.
6) Private company can commence business immediately on incorporation.
7) Private company need not keep an index of members.
8) Private company need not hold statutory meeting or file statutory report.
9) Provisions as to overall maximum managerial remuneration and remuneration to directors do not apply to a private company.
10) Minimum number of directors is not required