Difference between Private Company and Public Company Class 12
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 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. |
