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
| 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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