Differentiate between Private and Public Companies.

Solution

Paramters	Private Company	Public Company
1. Number of members	Minimum-2. Maximum-50.	Minimum-7 Maximum-No limit
2. Name	The name must include the word 'Private Limited'.	The name must include the word 'Limited'.
3. Articles of Association	Must prepare its own Articles of Association.	May adopt Table A as given in the Companies Act.
4. Prospectus	Need not issue and file a prospectus.	Must issue and file a Prospectus or Statement in lieu of Prospectus.
5. Commencement of business	Can commence its business immediately after getting the certificate of Incorporation.	Can commence business only after getting the certificate of Commencement of Business.
6. Share Warrants	Cannot issue share warrants.	Can issue share warrants
7. Statutory Meeting and Report	Not required to hold statutory meeting or file a statutory report.	Must hold statutory meeting and file a statutory report.
8. Deferred Shares	Can issue deferred shares with disproportionate voting rights.	Cannot issue such shares.
9. Managerial Remuneration	No restrictions on directors' remuneration.	Total annual remuneration must not exceed 11 percent of the net profit.
10. Index of members	Need not keep a separate index of members.	If membership exceeds 50, a separate index of members is required.