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    Public and Private Limited Company

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    Kumail Haider

    Copyright:

    © All Rights Reserved
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    Public and Private Limited Company

    Uploaded by

    Kumail Haider
    3 views17 pages

    Original Title

    7. Public and Private Limited Company

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    3 views17 pages

    Public and Private Limited Company

    Uploaded by

    Kumail Haider

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 17

    PRIVATE AND PUBLIC

    LIMITED COMPANIES
    Read to Learn
    Understand the difference between public and
    private limited company
    Key Terms

    A company whose securities are traded on a


    Public stock exchange and can be bought and sold by
    Limited anyone. Public companies are strictly regulated,
    Company and are required by law to publish their complete
    and true financial position so that investors can
    determine the true worth of its stock (shares)
    Key Terms

    Private A private limited company is a business entity


    that is held by private owners. This type of entity
    Limited limits the owner’s liability to their ownership
    Company stake, and restricts shareholders from publicly
    trading shares. Plus, the company is not listed
    on Stock exchange.
    Key Terms
    is a document that
    Articles of
    Association
    specifies the regulations for
    a company's operations
    and defines the company's
    purpose.
    Key Terms
    are required to run a company in
    accordance with the Companies Act
    Directors and the articles of association. They
    are placed in a position of trust and
    expected to promote the success of
    the business and make decisions for
    the benefit of the company alone,
    not for personal gain.
    Key Terms

    is document required
    Certificate of
    commencement
    under the company act
    2013 before a business
    can initiate its operations.
    Key Terms
    is a legal document relating to the
    formation of a company or
    Certificate of corporation. It is a license to form a
    Incorporation corporation issued by state
    government or, in some jurisdictions,
    by non-governmental
    entity/corporation.
    KEY DIFFERENCES:

    NUMBER 1:

    Public Limited Private Limited


    Company Company

    • A public limited company is a • On the other hand, a private


    company listed on a limited company is neither
    recognized stock exchange listed on the stock exchange
    and the stocks are traded nor are they traded. It is
    publicly. privately held by its members
    only.
    KEY DIFFERENCES:

    NUMBER 2:

    Public Limited Private Limited


    Company Company

    • The minimum number • As against this, the private


    of members required limited can be started with
    a minimum of two
    to start a public members.
    company is seven.
    KEY DIFFERENCES:

    NUMBER 3:

    Public Limited Private Limited


    Company Company

    • The issue of prospectus or • However, this is not the


    statement is mandatory in case of a private company.
    case of public company.
    KEY DIFFERENCES:

    NUMBER 4:

    Public Limited Private Limited


    Company Company

    The shareholders of a public The transferability of shares


    company can transfer their is restricted completely in
    shares freely.
    private limited company.
    KEY DIFFERENCES:

    NUMBER 5:

    Public Limited Private Limited


    Company Company

    Term used at the Term used at the


    end of name: end of name:
    Limited Private Limited
    KEY DIFFERENCES:

    NUMBER 6:

    Public Limited Private Limited


    Company Company

    Minimum members Minimum members


    are 7. Maximum are 7. Maximum
    members are members are 200.
    unlimited
    KEY DIFFERENCES:

    NUMBER 7:

    Public Limited Private Limited


    Company Company

    Minimum Minimum
    Directors are 3. Directors are 2.
    KEY DIFFERENCES:

    NUMBER 8:

    Public Limited Private Limited


    Company Company

    Can start business after Can start business after


    receiving certificate of receiving certificate of
    incorporation and certificate incorporation.
    of commencement of
    business.
    KEY DIFFERENCES:

    NUMBER 9:

    Public Limited Private Limited


    Company Company

    Statutory Meeting Statutory Meeting is not


    mandatory.
    is mandatory.

    Statutory Meeting is the first meeting of the shareholders of a public company.

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