Distinguish between the following: Private Company and Public Company

Question

Distinguish between the following:

Private Company and Public Company

Monjur Alahi

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2025-01-04 04:42

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Basis	Private Company	Public Company
1. Definition	A company, which by its articles restricts the right to transfer of shares and limits maximum membership up to 200 is called a Private Company.	A company that is not a private company is called a Public Company.
2. Number of members	Minimum 2 and maximum 200 members.	Minimum 7 and maximum ‘No limit’ on membership.
3. Number of directors	Minimum 2 directors are essential, in Private Company.	Minimum 3 directors are essential in a Public Company.
4. Right to transfer shares	Shares of Private companies are not transferable.	Shares of public companies are freely transferable.
5. Issue of prospectus	A private company cannot issue a prospectus.	Public companies can issue prospectus.
6. Ending words	Name of the Private Company compulsory ends with “Private Limited.”	Name of Public company compulsory ends with “Limited”.