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.
I have explained this topic in detail.
Distinction between Private Company and Public Company class 12
Private Company vs Public Company
|Basis of Distinction||Private Company||Public Company|
|Number of members||The 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 public||It can not invite the public to subscribe to its share.||It can invite the public to subscribe to its share.|
|Transfer of shares||There is a restriction on the transfer of its shares.||There is no restriction on the transfer of its shares.|
|Preparation of Articles||Preparation of Articles is necessary for all private companies.||It must have at least three directors.|
|Number of Directors||It 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.|