Question
State the difference between Private Company and Public Company.
| No. | Point of Difference | Private Company | Public Company |
| $1.$ | Number of Members | In a private company, there are minimum 2 and maximum 200 members. | In public company there are mini-mum 7 and maximum unlimited members. |
| $2.$ | Name | At the end of the name of the Company Private Limited (Pvt. Ltd.) is compulsory written. | At the end of the name of the company 'Limited' is written. |
| $3$ | Invitation to Public | It cannot issue a prospectus to invite public to purchase shares or debentures. | It can issue a prospectus or a statement in lieu of prospectus for inviting people to purchase shares. |
| $4.$ | Articles of association | Articles of Association must be prepared and it is compulsory to registered. | If they don't get the Articles prepared and registered it, the Table-A, of the Company Law applies to it |
| $5.$ | Transfer of Shares | It cannot transfer shares. It is restricted. | Members can transfer shares easily. |
| $6.$ | Number of Directors | It must have at least two directors. | It must have at least three directors. |
| $7.$ | Minimum Subscription | The provision of minimum subscription does not apply to a private company. | The public company is bound by the provision of minimum subscription (30 days). |
| $8..$ | One Person Company | Private Company can be "one man company." | Public company cannot be "One man Company." |
| $9.$ | Issue of New Shares | Issue of new shares can be offered to the persons other than the existing member of private company. | Issue of new shares is offered first to the existing members of the public company. |
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