Q: Differentiate between public V/S private companies given points?
Ans: Following are the differences between the Public Company and the Private company.
1. No maximum number of share holder is fixed for public company but: The number of share holder in ease of private company can exceed from 50.
2. The public company, even after receiving the certificate of incorporation, cant start its business as long as it gets the Certificate of commencement where as: Private company can commence its business as soon as it receives the Certificate of Incorporation needing no certificate of commencement.
3. It is necessary for public company to have at least 3 directors on its board but: No appointment is required at all in the private company.