Difference between Public Limited(Public Ltd ) and Private Limited(Pvt Ltd) Company | Finance

Difference between Public Limited(Public Ltd ) and Private Limited(Pvt Ltd) Company
Finance
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Management Notes

Basis Public Limited Company(Public Ltd.) Private Limited Company(Pvt Ltd.)
Definition 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.
Minimum Paid-Up Capital Public 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 members Public 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 Shares In Public Limited Company,  there is no restriction in transferability of shares. In Private Limited Company, transferability of shares is completely restricted.
Sales of Shares Public 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 Prospectus Public Limited Company can issue a Prospectus. Private  Limited Company cannot issue a Prospectus.
Allotment of shares Public 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 Directors Public Limited Company must have at least 3 directors. Private Limited Company may have 2 directors.
Consent of directors In 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.
Promoters In 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 privileges There are no special privileges available to a Public Limited Company. There are certain special privileges available to a Private Limited Company.
Quorum In 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 meeting In 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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