Public Limited Company Vs Private Limited Company

Public Limited Company Vs Private Limited Company-Finance| Management Notes

Public Limited Company Vs Private Limited Company
Finance
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Management Notes

Public Limited Company Vs Private Limited Company:

A Public Limited  Company is a company which is owned and traded publicly by the general public.A Private Limited Company is one that is owned privately by a group of private individuals.

Public Limited Company Vs Private Limited Company

BasisPublic Limited Company(Public Ltd.)Private Limited Company(Pvt Ltd.)
DefinitionA Public Limited  Company is a company which is owned and traded publicly by the general public.A Private Limited Company is one that is owned privately by a group of private individuals.
Minimum Paid-Up CapitalPublic Limited Company has minimum paid-up capital of Rs. 500000.Private Limited Company has minimum paid-up capital of Rs. 100000.
Minimum and Maximum no.  of membersPublic Limited Company must have minimum 7 members and there can be unlimited members.Private Limited Company must have minimum 2 members and there can be maximum up to 50 members.
Transferability of SharesIn Public Limited Company,  there is no restriction in transferability of shares.In Private Limited Company, transferability of shares is completely restricted.
Sales of SharesPublic Limited Company can issue and sell their shares to general public.Private Limited Company cannot issue and sell their shares to general public.
Issue of ProspectusPublic Limited Company can issue a Prospectus.Private  Limited Company cannot issue a Prospectus.
Allotment of sharesPublic Limited Company has to secure minimum capital before allotting its shares.In case of Private limited Company there is no such restriction and it can allot shares.
Number of DirectorsPublic Limited Company must have at least 3 directors.Private Limited Company may have 2 directors.
Consent of directorsIn case of Public Limited Company,consent of the directors in writing to act as such is necessary.In case of Private Limited Company,consent of directors is not necessary.
PromotersIn case of Public Limited Company, the no. of promoters required is 7.In case of Private Limited Company, the no. of promoters required is 2.
Special privilegesThere are no special privileges available to a Public Limited Company.There are certain special privileges available to a Private Limited Company.
QuorumIn Public limited company minimum 5 members needs to be present  in Quorum.In Private limited company minimum 2 members needs to be present in Quorum.
Statutory general meetingIn case of Public limited company, it is compulsory to call statutory meeting.In case of Private limited company, there is no need to call  statutory meeting.

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