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SUSHMARAWATStartedTheDiscussion:
RespectedSeniors
GoodMorning,PleaseDoTellMeWhatIsTheDifferenceAmongLtd.,
Pvt.Ltd.AndPublicLimitedCompany.AndIsThereAnyDifference
RegardingTheBenefitsOfTheWorkersOfferedByTheseFirmsOr
EverythingIsSame.
BestRegards
Sushma

MANOJMBAACS

DearFriend,
Ltdcompanyisotherwiseknownaspubliclimitedcompanyandpvtltd
companyisaprivatelimitedcompany.Underpubliclimitedthereareprivate
sectorcompanyandpublicsectorcompany.
Thedifferencebetweenpvtltdandpublicltdcompanyisintheno.of
shareholdersandtransferabilityofshares.Inpvtltdtheminimumno.of
shareholdersis2andmaximumis50excludingthepastandpresent
employeeswhoholdsshares.Whereasinpubliclimitedtheminimumno.of
shareholdersis7andthereisnomaximumlimit.
Inthecaseofpubliclimitedco.,thesharesarefreelytransferablebutitisnot
soinprivatelimitedcompany.
Someofthestrigentrequirementswhichareapplicabletopubliclimited
companiesarenotthereinthecaseofprivatelimitedcompanies.
Publicsectorcompanyisacompanywherethecentralgovtorstategovtor
bothofthemcombinedtogetherholdsthemajorityofshares.ButinPrivate
sectorcompaniestheprivateindividualsorbusinesshousesholdsthemajority
ofshares.
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WhatIsDifferenceAmongLtd.,Pvt.Ltd.AndPublicLimitedDocDownload

AsfarasIamconcernedthereisnosignificantdifferenceregardingthe
benefitstobeofferedbyaPrivateLtdorPublicLtdCompanies.Mostofthe
benefitsarereliantontheno.ofemployeesworkinginaconcern.
Hopesomeofyourdoubtsarecleared.
Thankingyou
regards
ManojPillai
SUSHMARAWAT

RespectedMr.PillaiThankyousomuchforyourvaluablepostregardingmy
query.BestRegardsSushmaRawat
ALIBABA10

Hello:
Ltdandpublicltdcompaniesareoneandthesame.PvtLtdcompaniesarethe
onesthatcannotissuetheirsharestothepublicatlargeandthetotalnumber
ofshareholdersinthecompanyislimitedto20(atleastthat'sthewayitwasin
19743whenIstartedmycompany).
Therearenodifferencesrelatingtocompensationrulesbetweenpublicand
pvtltdcompanies.
DEVARAJAN.VM

Dearall,PleasehelpmetoprepareaMOUbetweenourdirectors.Ineed
somemodelorsampleforSoftwarebasedcompanies.Thanksforsupporting
aYE.RegardsDeva
SHUFYAN18041984@GMAIL.COM

DistinctionBetweenAPublicCompanyAndaPrivateCompanyFollowingare
themainpointsofdifferencebetweenaPublicCompanyandaPrivate
Company:
1.MinimumPaidupCapital:AcompanytobeIncorporatedasaPrivate
CompanymusthaveaminimumpaidupcapitalofRs.1,00,000,whereasa
PublicCompanymusthaveaminimumpaidupcapitalofRs.5,00,000.
2.Minimumnumberofmembers:Minimumnumberofmembersrequiredto
formaprivatecompanyis2,whereasaPublicCompanyrequiresatleast7
members.
3.Maximumnumberofmembers:MaximumnumberofmembersinaPrivate
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Companyisrestrictedto50,thereisnorestrictionofmaximumnumberof
membersinaPublicCompany.
4.Transerferabilityofshares:Thereiscompleterestrictiononthe
transferabilityofthesharesofaPrivateCompanythroughitsArticlesof
Association,whereasthereisnorestrictiononthetransferabilityoftheshares
ofaPubliccompany
5.IssueofProspectus:APrivateCompanyisprohibitedfrominvitingthe
publicforsubscriptionofitsshares,i.e.aPrivateCompanycannotissue
Prospectus,whereasaPublicCompanyisfreetoinvitepublicforsubscription
i.e.,aPublicCompanycanissueaProspectus.
6.NumberofDirectors:APrivateCompanymayhave2directorstomanage
theaffairsofthecompany,whereasaPublicCompanymusthaveatleast3
directors.
7.Consentofthedirectors:Thereisnoneedtogivetheconsentbythe
directorsofaPrivateCompany,whereastheDirectorsofaPublicCompany
musthavefilewiththeRegistraraconsenttoactasDirectorofthecompany.
8.Qualificationshares:TheDirectorsofaPrivateCompanyneednotsignan
undertakingtoacquirethequalificationshares,whereastheDirectorsofa
PublicCompanyarerequiredtosignanundertakingtoacquirethe
qualificationsharesofthepublicCompany.
9.CommencementofBusiness:APrivateCompanycancommenceits
businessimmediatelyafteritsincorporation,whereasaPublicCompany
cannotstartitsbusinessuntilaCertificatetocommencementofbusinessis
issuedtoit.
10.SharesWarrants:APrivateCompanycannotissueShareWarrants
againstitsfullypaidshares,WhereasaPublicCompanycanissueShare
Warrantsagainstitsfullypaidupshares.
11.Furtherissueofshares:APrivateCompanyneednotofferthefurther
issueofsharestoitsexistingshareholders,whereasaPublicCompanyhasto
offerthefurtherissueofsharestoitsexistingshareholdersasrightshares.
Furtherissueofsharescanonlybeoffertothegeneralpublicwiththe
approvaloftheexistingshareholdersinthegeneralmeetingoftheshare
holdersonly.
12.Statutorymeeting:APrivateCompanyhasnoobligationtocallthe
StatutoryMeetingofthemember,whereasofPublicCompanymustcallits
statutoryMeetingandfileStatutoryReportwiththeRegisterofCompanies.
13.Quorum:ThequoruminthecaseofaPrivateCompanyisTWOmembers
presentpersonally,whereasinthecaseofaPublicCompanyFIVEmembers
mustbepresentpersonallytoconstitutequorum.However,theArticlesof
Associationmayprovideandnumberofmembersmorethantherequired
undertheAct.
14.Managerialremuneration:Totalmanagerialremunerationinthecaseofa
PublicCompanycannotexceed11%ofthenetprofits,andincaseof
inadequateprofitsamaximumofRs.87,500canbepaid.Whereasthese
restrictionsdonotapplyonaPrivateCompany.
15.Specialprivileges:APrivateCompanyenjoyssomespecialprivileges,
whicharenotavailabletoaPublicCompany
AttachedFiles

Providedbycommunitymembershufyan18041984@gmail.com.Registertojoin
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yournetworkofpeers.
DifferencebetweenaPrivateLtdandPublicLtd.doc(38.0KB,1566views)

GANGADHARKHANDELWAL

DearSeniors,
PleaseinformmethedifferncebetweenLtdandPvtLtdasperpresent
law.PleasealsoinformeveryLtdcompanylistinginstockexchangeis
nessesaryornot.ThosecompanyrtellingthattheyrLtdcompanybutnotlisted
instockexchangecansharesellortransfertheirsharetoanyone?Ifyes
how?
VINISHKUMAR

ThanksalottoSushma(whoraisedthequestion),Mr.ManojPillaiand
Shufiyan,forprovidingagudpieceofinfotometoo.Regards,VinishKumar
Cochin.
POOJAPARMAR

PrivateLtdCompanies:
Theshareholders'requirementsareaminimumof2.Theliabilitiesare
restrictedtotheshareholders'personalwealthandstakes,proportionately.
Anytwoshareholders/directors,ina3memberorganisation,canpassany
resolutionforthecompany.
Therearenoqualifications,forappointmentofthedirectors.
Noworkingexperienceisrequired.
TherearefewerlegalobligationstobefulfilledintheCompanyLawBoard.
Thecompaniesaretosubmittheannualprofitandlossaccounttothe
RegistrarofCompanies.
Anyappointment/resignationistobeinformedtotheROC.

InaPublicLtd.company,therehastobeaminimumof7shareholders,
toinvestforaminimumofoneshare.
Theliabilitiesoftheshareholdersareprime.
RegularBoardMeetingsaretobecalled.
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AnnualGeneralBodyMeetingsaretobeheldeveryyear.
Decisionsaboutthecompaniesactivitiesaretoberatifiedbytheshare
holders,intheAGMs.
ThemajorityoftheShareholders,throughthedirectors,canpassany
resolutionforthebettermentofthecompany.
Forpassinganyspecialresolutionforthethecompany,boardmemberswould
requireatleast76%ofvotesoftheshareholderstopassthesame.
Suchresolutions,ifpassed,canbeveryseriousinnature.
AllsuchresolutionsaretobesenttotheROC.
TherearerequirementsofmaintainingMinutes'Bookofthecompany.
Theshareholderscannotbedeniedtoinspecttheminutes'book.
TheBoardofDirectorsaretobequalifiedtorunacompany.
Althoughtheremaybeseveraldirectorsinsuchacompany,butthefinancial
implicationsinvolvestheentireshareholders,irrespectiveofeachdirectors'
stake.
Anyaggrievedminorityshareholder(agroup),havingmorethan5%shares,if
hefeels,thatthecompanyisdoingsomethingwrong,againsttheinterestsof
them/himcanfileapetitionintheCLBu/s398399oftheCompanyAct1956,
formismanagementandwindingupofthecompany.
Theobligationsaretoomanytoprotecttheinterestsoftheshareholders,
having5%+shares.
Asperthenewlaws,therehastobeacompanysecretaryinapublicltdco.
ThesecompaniesareelligibletofloatIPO,ifthereareprofitsforthelast
threeyears,foranyexpansionprojects,subjecttotheapprovalofSEBI.
Ithinkthisinformationissufficientforyou.
PoojaSharmaParmar

STRAITBEAR

respectedpilaisir,thanksalottosharewithusyourknowledge.pleaseguide
ushowcanisetuppvtltdcompanyfromverybeginning.whatsthesteps.
regardkuldeepmewara8802244054
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