|
Sr. |
Basis |
Section |
Public section |
Private section |
| 1. | Formulation of company |
149 |
After receiving the certificate of commencement of business | After receiving the certificate of incorporation |
| 2 | Minimum no. of members to form a company |
12(1) |
Seven | Two |
| 3 | Maximum no. of members |
12(1) |
No restriction | Fifty |
| 4. | Minimum paid up capital |
|
Five lakhs rupees or such higher capital as may be prescribed. | One lakhs rupees of such higher capital as may be prescribed. |
| 5. | Minimum no. of directors |
252(1) |
Three | Two |
| 6. | Maximum no. of directors |
259 |
Twelve for more than 12approval of Central Government is necessary. | No such restriction. |
| 7. | Appointment of small shareholders Director |
252(1) |
Applicable if the company’s paid-up capital is Rs.5 Crore or more and having at least one thousand small shareholders. | Not applicable. |
| 8. | Appointment of causal directors |
252(1) |
Applicable, subject to any regulation in the articles of the company. | Not applicable |
| 9. | Subscription of shares |
3(1) |
No such restrictions. | Prohibits any invitation to the public to subscribe for any shares in or debenture of the company.` |
| 10. | Issue of share warrants |
114(1) |
Can issue subject to authorization in the articles of the companies, with the previous approval of Central Government and in respect of fully paid up shares | Not applicable |
| 11. | Further issue of capital |
81 |
Applicable, subject to certain exceptions. | Not applicable |
| 12. | Audit committee |
292A |
Applicable to every public company whose paid-up capital is not less than five crores of rupees | Not applicable |
| 13. | Statutory meeting |
165 |
Shall hold within a period of not less than one months from the date at which the company is entitled to commence business | Not applicable |
| 14. | Quorum for a general meeting |
174(1) |
Five members personally present | Two members personally present |
| 15. | Appointment of proxy |
176(1) |
No restriction | Not entitled to accept more than one proxy for each member. |
What is the difference between a private company and a public company?
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