Difference between Private Company and Public Company Class 12

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Looking for what is the difference between a private company and a public company as per the syllabus of class 12 CBSE, ISC, and State Board.

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Distinction between Private Company and Public Company class 12

Private Company vs Public Company

Basis of DistinctionPrivate CompanyPublic Company
Number of membersThe minimum number of members is 2, and the maximum, exclusive of past and present employees, is 200.The minimum number of members is 7 and there is no limit to the maximum number
Invitation to the publicIt can not invite the public to subscribe to its share.It can invite the public to subscribe to its share.
Transfer of sharesThere is a restriction on the transfer of its shares.There is no restriction on the transfer of its shares.
Preparation of ArticlesPreparation of Articles is necessary for all private companies.It must have at least three directors.
Number of DirectorsIt must have at least two directors.It must have at least three directors.
Use of word ‘Limited’It is compulsory to use the words ‘Private Limited’ at the end of its name.Only the word ‘Limited’ is used at the end of its name.
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