Distinction Between a Public Company and a Private Company

In: Business and Management

Submitted By khan1121
Words 611
Pages 3
Legal FAQs -Distinction Between A Public Company And a Private Company
Distinction Between A Public Company And a Private Company – Following are the main points of difference between a Public Company and a Private Company :-
1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.
2. Minimum number of members : Minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members.
3. Maximum number of members : Maximum number of members in a Private Company is restricted to 50, there is no restriction of maximum number of members in a Public Company.
4. Transerferability of shares : There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association , whereas there is no restriction on the transferability of the shares of a Public company
5 .Issue of Prospectus : A Private Company is prohibited from inviting the public for subscription of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public Company is free to invite public for subscription i.e., a Public Company can issue a Prospectus.
6. Number of Directors : A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have at least 3 directors.
7. Consent of the directors : There is no need to give the consent by the directors of a Private Company, whereas the Directors of a Public Company must have file with the Registrar a consent to act as Director of the company.
8. Qualification shares : The Directors of a Private Company need not sign an undertaking to acquire the qualification shares, whereas the Directors of a Public Company are required to sign an undertaking to acquire the…...

Similar Documents

Public Investment Companies Summary

...Taxation 2 April 11, 2013 Assignment 2- Public Investment Company Public Investment Companies: are companies that completely fulfill all the criteria of public investment company procedures and is registered according to section 120 of the International Business Act Chapter 270. The guidelines for the operations of a Public Investment Company in Belize: 1. A company who wants to apply in order to become a public investment company must meet these following requirements: * The company must have a net tangible asset value equal to $2,500,000 or more. (otherwise specified amount by minister) * The company must have a gross tangible asset value equal to $25,000,000 or more. (otherwise specified amount by minister) * The company and its principal operating subsidiaries, if any, must have been conducting business in Belize for a continuous period of twenty-four months. * The company, in most previous financial year, had an a net income equal to $500,000 or more (otherwise specified amount by minister) * The company from two previous complete financial year had an average net income equal to $375,000 or more (otherwise specified amount by minister) * Of the company’s subsidiaries, if any, should be known as a development enterprise or either fall under the Fiscal Incentive Act * The company and its subsidiaries, if any, jointly have a continuous period more than 24 months (or otherwise period instructed by Minister)......

Words: 2043 - Pages: 9

Relationship Between Private and Public Police

...Relationship between Private and Public Police Hope Washington CJS/250 Introduction to Security April 7, 2013 John Adams The relationship between public and private police, initially it was the responsibility of the public police-law enforcement to provide protection to all society and the property that existed within the jurisdictions these police officers served. In contemporary day, public and private police officials can be found working hand-in-hand on a regular basis at numerous public and private events-functions. In addition, it is not uncommon to observe police officers working part-time jobs with private security officials in order to safeguard valuable assets. Certain jurisdictions throughout the United States, have giving special private security officers arrest powers as a result of the lack of public security officers available. One major difference that has been slowly but steadily changing is the mandatory training required for both the public and private security officers. The training and education a public police officer must complete in order to be hired by any department, is on average far more in-depth than that of a private security officer who usually is forced to submit to a standard drug test and a basic back ground criminal investigation check. But the educational opportunities that exist in modern day, the availability of these educational opportunities and the liability problems that exist as a result of not having professionally trained......

Words: 858 - Pages: 4

When Companies Satisfy Public Needs

... When company satisfy public needs The marketing system of all companies all over the world has been accused of adding to several “evils” in all societies at large, unlike other business functions like accounting or finance, people in marketing interact directly with the public even studies show that marketer and salesperson rank poorly in ratings of the most trusted professions.  Critics have charged that the marketing system urges too much in material possessions. People are judged by what they own rather than who they are, phrases such as “greed is good”, “shop till you drop” seemed to characterize this time and this world where the false wants and the excessive materialism dominate. The critics do not view this interest in material things as a natural state of mind but rather as a matter of false wants created by marketing. Businesses hire advertisement’s means to stimulate people’s desires for goods, without forgetting the role of advertisement which uses the mass media to create materialistic models of a good life. People work harder to earn the necessary to make money with them, their purchases increase the output of the multinational or even the national industry, and industry in turn uses the advertisement to stimulate more desire for the industrial output. So when businesses will conversely react and try to establish and improve social goods?   Corporate social responsibility has been defined broadly as involving a firm taking “actions that appear to further......

Words: 684 - Pages: 3

Valuation of Private Companies

...Valuation of Private Companies 1) 2) 3) 4) 5) Comparables Net Present Value Approach Adjusted Presented Value Approach The ‘Venture Capital’ Method Options Analysis Each approach has advantages and disadvantages. Generally there is no “right” answer to a valuation problem. Valuation is very much an art as much as a science! 1 Evaluation of Comparables How to compute comparables: Start with a sample of securities whose business characteristics are similar to the company being valued. Assume that the company has similar financial ratios to the “comparable” companies. A number of different ratios are typically used: Price/Earnings, Market/Book, Market Value/Sales, EBIT. Then back out the implied value of the company being studied. Comparables Approach relies on two assumptions: Comparable companies have future cash flow expectations and risks similar to the firm being valued Performance measure is actually proportional to value 2 Different ways of Doing Comparables “Comparable Company” – Uses a multiple calculated from the trading values of firms in the same industry as the firm being valued. “Comparable Transaction” – Uses a multiple from companies that were involved in a similar transaction as the firm being valued. “Comparable Industry Transaction” – Uses a multiple from companies from the same industry that were involved in a similar transaction as the firm being valued. 3 Problems with Comparables Approach Generally tough to find appropriate......

Words: 1614 - Pages: 7

Relationship Between Public and Private Policing

...Relationship Between Public and Private Policing Dana L. Dvorak Bellevue University Abstract This paper will explore the historical relationship between public and private policing. It will also discuss how the relationship has changed in recent years. Relationship Between Public and Private Policing Since the terrorist attacks that struck inside the heart of our country on 11 September 2001, civilian law enforcement agencies have been busy performing not only their regular duties of crime prevention and response, but also taking on a large number of homeland security functions and all of this during a time when local, state and federal budgets are ever tightening. Similarly, private security institutions are under comparable pressure to carry out their traditional duties to provide protection of information, property and people, as well as sharing the additional duties of homeland security. Despite the fact that public and private police organizations share the same ultimate goal of protecting the public, they do not have a long history of working well together. Security officers have historically been looked down upon by law enforcement personnel. Some police feel that there is a definite lack of pre-employment screening, certification, training, standards, and regulation of security officers. Other police officers feel that security personnel receive insufficient training, especially those who carry weapons. Another perception that some police have is...

Words: 1566 - Pages: 7

Private Sector Companies

...mydin MOHAMED HOLDINGS BERHAD COMPANY MISSION We aims to be the leading wholesale and retail company by providing the best value, wide assortment of goods and continuous excellence based on our business formula Customers * MYDIN business activity is in retailing and wholesaling directly to the customers and sellers to cater their everyday needs. Suppliers * MYDIN deals with suppliers in providing products range from food line, household, soft-lines and hard-lines items. Managers/employees * MYDIN has more than 90 outlets that invite dedicated and dynamic individuals to be part of the company in order to achieve their mission. Owner * MYDIN has their own business formula in achieving their expected goals to be the leading wholesale and retail company. Community at large * MYDIN serves their products and services to the whole community in range of new born until senior citizen. AIRASIA HOLDINGS BERHAD COMPANY MISSION To attain the lowest cost so that everyone can fly with AirAsia by maintaining the highest quality product, embracing technology to reduce cost and enhance service level. Customer * Airasia focus on their customer’s needs and preferences by providing low cost airline. Supplier * Airasia deals with local supplier in terms of providing foods and beverages as well as Airasia merchandise in enhancing their services. Managers/employees * Airasia needs to maintain the quality of the employees as they provide services......

Words: 270 - Pages: 2

Describe the Historical Relationship Between Public and Private Policing

...utilization of private security has been expanding. Cops contrast extensively from private security faculty In the work they perform the fundamental employment prerequisites and preparing. Both police and private security assume a part in the public eye; nonetheless, the line between the two security callings is getting to be less obviously characterized. Cops who walk the beat before business properties might now get together with private security watchmen procured by businesspeople to watch their storefronts as an impediment to robbery and break and enters. Private security contrasts from the open police in various ways. Private security faculty work for customers who pay for the assurance of individual and/or property. The investments of the customer focus their obligations. Private security faculty has the same forces of capture, pursuit and detainment as a normal subject. The two principle sorts of private security will be security watchmen and private agents. The most conspicuous distinction between the two gatherings is that security monitors must wear garbs, while private examiners should not. Security gatekeepers may be approved to convey guns under unique circumstances (for instance, protected auto faculty), while private examiners are most certainly not allowed to do so. Cops vary significantly from private security work force in the work they perform, the essential employment necessities and preparing. Both police and private security assume a part in the......

Words: 646 - Pages: 3

Difference Between Service Company and Manufacturing Company

...set up a fish vaccines company, are evaluated. We basically concentrated in this Food Fish because in the last report of Nature Magazine they made a research paper where they said that about 250 types of fishes are vanished due to environment and food pollution. There was limitations of time but we tried our best. Basically in this report we describe about how can food fish can do business in India. This is the opportunity for the new entrepreneur like us. Introduction The target country of this research is India, which is the world’s second largest food-fish producing country (Brugère & Ridler, 2004). In India the inland aquaculture production has increased substantially from 1.55 million tons in 2000 to 3.72 million tons in 2010 (FAO-Statistics, 2010) and is forecasted to reach between 8-10 million tons by 2020 (Paroda & Praduman, 2000). The Carp species, namely, Catla, Rohu and Mrigal, dominated the aquaculture segment amounting to 87% of the overall production (Abraham et al., 2010). Exotic species like Silver carp, Grass carp, 10 other minor carp species and catfish (Magur and Singhi) are gaining importance. Some of the reasons for the lack of success in vertical expansion of the Indian aquaculture industry were attributed to bacterial or viral disease outbreaks and poor disease resistance in the cultivated species. The decision to set up a business in a given country is determined by influences in the external company environment such......

Words: 2436 - Pages: 10

The Relationship Between Public and Private Schools

...CHAPTER I INTRODUCTION A person's education is one of the most important factors in determining whether or not they will become a productive member of society. That is why when considering an education the quality of the education is almost as important as the education itself. So when private schools came into the picture the debate then began between public and private schools. There have been many discrepancies between the values of a public school as opposed to a private school. Advocates of private school argue that the education received in one of these facilities is more valuable and rewarding than any other educational opportunity (Greifner, 2007). On the other hand, supporters of public schools feel that the students are better-rounded, both scholastically and worldly, when in public schools. Many feel that public exposes students to all types of diversity and situations that will make them better adapted for the real world (Kennedy, 2007). Statement of the Problem It seems most people are of the opinion that private schools are superior; the issue is simply if it is worth the money. However, this may not be the case. Therefore, how does one gauge the superiority of a school? This very difficult question has no easy answers. The most common and maybe the only way researchers can create and measure the effectiveness of a school is by measuring achievement. The American Heritage Dictionary seems to define achievement as “something that has been accomplished......

Words: 4051 - Pages: 17

Comparisons Between Public Prisons and Private Prisons in the Us

...industry to private prisons. The modern private prison business first emerged and established itself publicly in 1984 when the Corrections Corporation of America (CCA) was awarded a contract to take over a facility in Hamilton County, Tennessee. Now private prison is a $5 billion industry and 8.4% of US prison population is housed in private prisons. The US has 95% of private prisons in the world and the two biggest private prison companies now in the US are CCA and The GEO group with the capacity of nearly 200,000 beds and total revenue of $3 billion in 2010. Before comparing between public and private prisons, we should know that both of them are in the prison system and have the same aims, which are punish offenders, rehabilitate offenders, keep the public safe and provide structure to criminals. Since the increasing number of private prisons, the arguments between whether private prison or public prison is better never stops. But there’s one thing for sure, private prisons can exist and last for several decades with number increasing, there must be there advantage over public prisons:  The first advantage, which is the one that private prison companies usually claims, is the cost-saving and cost-efficiency. The reason for that is, private prisons aren’t government run or regulated, so they have the ability to buy supplies and equipment in bulk and at lower prices with negotiation. And with private prisons, government can save enormous operational costs while private......

Words: 1761 - Pages: 8

Public Company Accounting Oversight Board

...Public Company Accounting Oversight Board Otis K Scales III LAW/531 December 14, 2015 Prof. Demond Philson Public Company Accounting Oversight Board The Public Company Accounting Oversight Board (PCAOB) was “created as a part of the Sarbanes-Oxley Act of 2002 (SOX), which requires United States public company audits to be subject to external and independent oversight” ("What Is PCAOB?", 2013). Accounting firms must register with PCAOB to take part in audit reports for dealers, issuers and brokers. Non-U.S. accounting firms that participate in any aspect of auditing reports are subject to the PCAOB rules and regulations as well. The PCAOB has the authority to “investigate and discipline registered public accounting firms and persons associated with those firms for noncompliance with the SOX, Security Exchange Commission (SEC), and other standards” ("What Is PCAOB?", 2013). The PCAOB has four distinctive functions; registration, inspection, setting standards and enforcement of those standards. Creation and Work of the PCAOB When it comes to the creation and work of the PCAOB, one need to think of just how each registered accounting firm and individual now must comply with the standards set forth by the PCAOB. Prior to the creation of the PCAOB, many of the accounting firms were self-regulated and often paid a sizable fee for nonaudit consultations from companies such as Enron, WorldCom and Tyco, just to name a few (Rouse, 2015). ......

Words: 798 - Pages: 4

Taking a Company Public

...Taking the Company Public Keller Graduate School of Management-AC600 Online October 2011 Table of Contents Introduction 3 Step 1: Finding an Underwriter 3 Step 2: SEC Filing 4 Step 3: The Cooling Down Period 5 Step 4: Price per Share 5 Timeline to Public Trading 6 Conclusion 7 Works Cited 8 Introduction In the pages below, the steps required to take a company public will first be briefly described and then specifically detailed. After that a general timeline will be listed to help paint a picture of the approximate time needed to take a private company and turn it into a publicly traded business. Once the steps and timeline of going public have been discussed, the final paragraph will be a brief overview of everything mentioned previously in this article. Step 1: Finding an Underwriter The first step towards moving a private company into the public sector is finding a financial institution to invest in the company. Examples of such banks include Morgan Stanley and Merrill Lynch. The company should consider several different institutions for their merger into the public realm. This entity is one that will become very intertwined with the company and thus the company should seek out the one that best suits their needs. Some prefer the larger institutions with the history and track record for leading successful initial public offerings (IPOs) into the market. However, other companies will prefer......

Words: 1545 - Pages: 7

Relationship Between Public and Private Police

...Relationship between Private and Public Police The relationship between public and private police has always been a one that is on the outskirts of each other. There is a thin line between what a private officer can and cannot do when it comes to enforcing the laws and rules on a property, there comes a point where they need the assistance of public officers who have the training and legal authority to handle a certain individual or situation. Although many of the individuals in the private sector have the same training as any public officer they cannot help in the situation because local laws set in place limit their authority. Although many states are starting to incorporate the private sector of security with the public side of it, it is a major work in progress. Private sectors do not receive the respect they deserve from the public because they do not have the same legal standpoint as public officers, with laws allowing private security the same authority as public officer a partnership could be works to have an officer in more square miles than there are now. If the public and private system join together and work with each other crimes could be solved faster and criminals could be caught faster. The separations of private and public security departments have been can be noted since the boom of private security companies in the early 2000’s and can be seen even before these years as private security has been around since the early 60’s, there are now major......

Words: 1013 - Pages: 5

Should Audit Committee Be Established in a Private Company?

...fact that the user of financial statement demanded more on audit function to implement audit attestation towards company’s financial statement whether for public listed or private company. It is due to their awareness of having a true and fair presentation of financial statement since they evaluate the company’s performance based on the company’s earnings which used to be the point at which the investors can make decision whether to invest or not. However, the case of fraud and manipulation in a company are still critical and need to be monitored by certain functional department as such to be the whistle blower for any irregularities that may arise in the company. In fact, over the last decade, there were various regulatory agencies and interest groups in existence which had been aggressively promoting the idea of an effective audit committee in all public listed companies. Yet, the absence of audit committee in a private company might be the cause for unstoppable practices of fraud. Therefore, the objective of this study is to determine whether the new theory of this formation of audit committee in a private company, can really help to eliminate or at least minimize the fraud. To achieve this goal, the study will conduct a survey based on questionnaires that will be distributed to the top management of a private companies, charted accountant i.e auditors and lecturers of audit course. The findings will be used to support the theory of this research. In the article,......

Words: 2737 - Pages: 11

The Weaknesses of a Private Company Going Public

...What Are the Weaknesses of a Private Company Going Public? Taking a private company public can be a celebratory time for owners and management. It is the reward for years of successful business practices and positive consumer reception. Taking a company public can also expose significant weaknesses in a company that is unprepared to weather the added financial burdens and loss of control that come with life on the stock market. Distracted Management The process of a taking a private company is a long, complicated affair that can take as long as two years to complete, according to the Reference for Business website. This may open weaknesses in companies that lack good infrastructure directly beneath management. As a result, the daily running of the company and ground-level business decisions could suffer, which could affect the bottom line and consumer confidence when heading into life as a public company. Cost and Exhaustion Taking a company public is expensive -- costing between $50,000 and $250,000 just in fees and publicity costs. This can expose a weakness in funds for some companies that are not prepared to handle the initial financial burden. According to the Reference for Business, a company's initial public offering costs could claim 15 to 20 percent of the stock's total initial value. The process of taking a company public is also exhausting with time taken up meeting with lawyers, accountants and various business model personnel. The process can be so......

Words: 370 - Pages: 2