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Q. Define a public Ltd company and a private ltd company and draw a distinction
between the two. (1998) (2007/A)
Q. Define a private company. how does a private company differs from a public
company. (2001)
1. Introduction:
A company is an association of a number of individuals formed for some common purpose. most
of the present day companies are incorporated under companies ordinance 1985. a company is
capable of holding property, incurring debts, and suiting and being sued in the same manner as
an individual.
2. Definition:
"A company is a artificial person created by law with a perpetual succession a common seal. it
has legal entity, separate from persons composing it. it can sue and be sued in its own name."
S. E Thomas:
According to S. E Thomas
"A company is an an incorporated association of persons formed usually for the pursuit of some
commercial purrpose."
3. Kinds of company:
c) Un-limited company
d) Holding company
e) Subsidiary company
f) Private company
g) Insurance company
4. Private company :
(ii) Limits the number of its member two fifty not including person who are not employ of the
company and as a single member.
5. Public company:
According to sec 2 (30) of the companies ordinance public company means a company which is
not a private company. it is required to have at least seven members and seven directors
appointed accordingly.
I. As to member:
In public Ltd Company minimum 7 members but maximum no limited but according to their
shares.
In private Ltd company there is no need to hold statutory meeting. It is compulsory to hold
statutory meetings in public Ltd company.
In public company double tax is paid first by the company and second by the individual on its
income.
VII: As to dissolution:
Public Ltd company can easily dissolved under the companies ordinance 1948.
VIII. As to title:
Private company uses the word private limited with its name.
Public company uses the word public limited with its name.
A public company may be converted into a private company by suitable in the articles of
association.
(ii) Property of a company belongs to its company and not to its individual.
8. Conclusion:
To conclude I can say that a company is voluntary association for profit with capital divisible into
transferable share limited liability having a corporate body and common seal. if such association
is incorporated according to law, it become a legal person, an entity distinct and separate from
its members.