Difference Between Private and Public Lts Companies

8/5/2015 WhatIsDifferenceAmongLtd.,Pvt.Ltd.AndPublicLimitedDocDownload

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SUSHMARAWATStartedTheDiscussion:

RespectedSeniorsGoodMorning,PleaseDoTellMeWhatIsTheDifferenceAmongLtd.,Pvt.Ltd.AndPublicLimitedCompany.AndIsThereAnyDifferenceRegardingTheBenefitsOfTheWorkersOfferedByTheseFirmsOrEverythingIsSame.

BestRegardsSushma

MANOJMBAACS

DearFriend,

Ltdcompanyisotherwiseknownaspubliclimitedcompanyandpvtltdcompanyisaprivatelimitedcompany.Underpubliclimitedthereareprivatesectorcompanyandpublicsectorcompany.

Thedifferencebetweenpvtltdandpublicltdcompanyisintheno.ofshareholdersandtransferabilityofshares.Inpvtltdtheminimumno.ofshareholdersis2andmaximumis50excludingthepastandpresentemployeeswhoholdsshares.Whereasinpubliclimitedtheminimumno.ofshareholdersis7andthereisnomaximumlimit.

Inthecaseofpubliclimitedco.,thesharesarefreelytransferablebutitisnotsoinprivatelimitedcompany.

Someofthestrigentrequirementswhichareapplicabletopubliclimitedcompaniesarenotthereinthecaseofprivatelimitedcompanies.

Publicsectorcompanyisacompanywherethecentralgovtorstategovtorbothofthemcombinedtogetherholdsthemajorityofshares.ButinPrivatesectorcompaniestheprivateindividualsorbusinesshousesholdsthemajorityofshares.

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WhatIsDierenceAmongLtd.,Pvt.Ltd.AndPublicLimitedDocDownload

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AsfarasIamconcernedthereisnosignificantdifferenceregardingthebenefitstobeofferedbyaPrivateLtdorPublicLtdCompanies.Mostofthebenefitsarereliantontheno.ofemployeesworkinginaconcern.

Hopesomeofyourdoubtsarecleared.

Thankingyou

regards

ManojPillai

SUSHMARAWAT

RespectedMr.PillaiThankyousomuchforyourvaluablepostregardingmyquery.BestRegardsSushmaRawat

ALIBABA10

Hello:Ltdandpublicltdcompaniesareoneandthesame.PvtLtdcompaniesaretheonesthatcannotissuetheirsharestothepublicatlargeandthetotalnumberofshareholdersinthecompanyislimitedto20(atleastthat'sthewayitwasin19743whenIstartedmycompany).Therearenodifferencesrelatingtocompensationrulesbetweenpublicandpvtltdcompanies.

DEVARAJAN.VM

Dearall,PleasehelpmetoprepareaMOUbetweenourdirectors.IneedsomemodelorsampleforSoftwarebasedcompanies.ThanksforsupportingaYE.RegardsDeva

[email protected]

DistinctionBetweenAPublicCompanyAndaPrivateCompanyFollowingarethemainpointsofdifferencebetweenaPublicCompanyandaPrivateCompany:1.MinimumPaidupCapital:AcompanytobeIncorporatedasaPrivateCompanymusthaveaminimumpaidupcapitalofRs.1,00,000,whereasaPublicCompanymusthaveaminimumpaidupcapitalofRs.5,00,000.2.Minimumnumberofmembers:Minimumnumberofmembersrequiredtoformaprivatecompanyis2,whereasaPublicCompanyrequiresatleast7members.3.Maximumnumberofmembers:MaximumnumberofmembersinaPrivate



Companyisrestrictedto50,thereisnorestrictionofmaximumnumberofmembersinaPublicCompany.4.Transerferabilityofshares:ThereiscompleterestrictiononthetransferabilityofthesharesofaPrivateCompanythroughitsArticlesofAssociation,whereasthereisnorestrictiononthetransferabilityofthesharesofaPubliccompany5.IssueofProspectus:APrivateCompanyisprohibitedfrominvitingthepublicforsubscriptionofitsshares,i.e.aPrivateCompanycannotissueProspectus,whereasaPublicCompanyisfreetoinvitepublicforsubscriptioni.e.,aPublicCompanycanissueaProspectus.6.NumberofDirectors:APrivateCompanymayhave2directorstomanagetheaffairsofthecompany,whereasaPublicCompanymusthaveatleast3directors.7.Consentofthedirectors:ThereisnoneedtogivetheconsentbythedirectorsofaPrivateCompany,whereastheDirectorsofaPublicCompanymusthavefilewiththeRegistraraconsenttoactasDirectorofthecompany.8.Qualificationshares:TheDirectorsofaPrivateCompanyneednotsignanundertakingtoacquirethequalificationshares,whereastheDirectorsofaPublicCompanyarerequiredtosignanundertakingtoacquirethequalificationsharesofthepublicCompany.

9.CommencementofBusiness:APrivateCompanycancommenceitsbusinessimmediatelyafteritsincorporation,whereasaPublicCompanycannotstartitsbusinessuntilaCertificatetocommencementofbusinessisissuedtoit.10.SharesWarrants:APrivateCompanycannotissueShareWarrantsagainstitsfullypaidshares,WhereasaPublicCompanycanissueShareWarrantsagainstitsfullypaidupshares.11.Furtherissueofshares:APrivateCompanyneednotofferthefurtherissueofsharestoitsexistingshareholders,whereasaPublicCompanyhastoofferthefurtherissueofsharestoitsexistingshareholdersasrightshares.Furtherissueofsharescanonlybeoffertothegeneralpublicwiththeapprovaloftheexistingshareholdersinthegeneralmeetingoftheshareholdersonly.12.Statutorymeeting:APrivateCompanyhasnoobligationtocalltheStatutoryMeetingofthemember,whereasofPublicCompanymustcallitsstatutoryMeetingandfileStatutoryReportwiththeRegisterofCompanies.13.Quorum:ThequoruminthecaseofaPrivateCompanyisTWOmemberspresentpersonally,whereasinthecaseofaPublicCompanyFIVEmembersmustbepresentpersonallytoconstitutequorum.However,theArticlesofAssociationmayprovideandnumberofmembersmorethantherequiredundertheAct.14.Managerialremuneration:TotalmanagerialremunerationinthecaseofaPublicCompanycannotexceed11%ofthenetprofits,andincaseofinadequateprofitsamaximumofRs.87,500canbepaid.WhereastheserestrictionsdonotapplyonaPrivateCompany.15.Specialprivileges:APrivateCompanyenjoyssomespecialprivileges,whicharenotavailabletoaPublicCompanyAttachedFilesProvidedbycommunitymembershufyan18041984@gmail.com.Registertojoin



yournetworkofpeers.DifferencebetweenaPrivateLtdandPublicLtd.doc(38.0KB,1566views)

GANGADHARKHANDELWAL

DearSeniors,PleaseinformmethedifferncebetweenLtdandPvtLtdasperpresentlaw.PleasealsoinformeveryLtdcompanylistinginstockexchangeisnessesaryornot.ThosecompanyrtellingthattheyrLtdcompanybutnotlistedinstockexchangecansharesellortransfertheirsharetoanyone?Ifyeshow?

VINISHKUMAR

ThanksalottoSushma(whoraisedthequestion),Mr.ManojPillaiandShufiyan,forprovidingagudpieceofinfotometoo.Regards,VinishKumarCochin.

POOJAPARMAR

PrivateLtdCompanies:

Theshareholders'requirementsareaminimumof2.Theliabilitiesarerestrictedtotheshareholders'personalwealthandstakes,proportionately.

Anytwoshareholders/directors,ina3memberorganisation,canpassanyresolutionforthecompany.

Therearenoqualifications,forappointmentofthedirectors.

Noworkingexperienceisrequired.

TherearefewerlegalobligationstobefulfilledintheCompanyLawBoard.

ThecompaniesaretosubmittheannualprofitandlossaccounttotheRegistrarofCompanies.

Anyappointment/resignationistobeinformedtotheROC.

InaPublicLtd.company,therehastobeaminimumof7shareholders,toinvestforaminimumofoneshare.

Theliabilitiesoftheshareholdersareprime.

RegularBoardMeetingsaretobecalled.



AnnualGeneralBodyMeetingsaretobeheldeveryyear.

Decisionsaboutthecompaniesactivitiesaretoberatifiedbytheshareholders,intheAGMs.

ThemajorityoftheShareholders,throughthedirectors,canpassanyresolutionforthebettermentofthecompany.

Forpassinganyspecialresolutionforthethecompany,boardmemberswouldrequireatleast76%ofvotesoftheshareholderstopassthesame.

Suchresolutions,ifpassed,canbeveryseriousinnature.

AllsuchresolutionsaretobesenttotheROC.

TherearerequirementsofmaintainingMinutes'Bookofthecompany.

Theshareholderscannotbedeniedtoinspecttheminutes'book.

TheBoardofDirectorsaretobequalifiedtorunacompany.

Althoughtheremaybeseveraldirectorsinsuchacompany,butthefinancialimplicationsinvolvestheentireshareholders,irrespectiveofeachdirectors'stake.

Anyaggrievedminorityshareholder(agroup),havingmorethan5%shares,ifhefeels,thatthecompanyisdoingsomethingwrong,againsttheinterestsofthem/himcanfileapetitionintheCLBu/s398399oftheCompanyAct1956,formismanagementandwindingupofthecompany.

Theobligationsaretoomanytoprotecttheinterestsoftheshareholders,having5%+shares.

Asperthenewlaws,therehastobeacompanysecretaryinapublicltdco.

ThesecompaniesareelligibletofloatIPO,ifthereareprofitsforthelastthreeyears,foranyexpansionprojects,subjecttotheapprovalofSEBI.

Ithinkthisinformationissufficientforyou.

PoojaSharmaParmar

STRAITBEAR

respectedpilaisir,thanksalottosharewithusyourknowledge.pleaseguideushowcanisetuppvtltdcompanyfromverybeginning.whatsthesteps.regardkuldeepmewara8802244054



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