1.

Distinguish between public and private company on the basis of the following: a. Number of members b. Prospectus c. Number of directors d. Transfer of shares e. Minimum paid up capital

Answer»
Basis of differencePublic company  Private company
a) Number of members Minimum number of member required to form a public company is seven and no limit on maximum members.Minimum number of persons required to form a private company is two members Maximum fifty members
b)Prospectus Compulsory to issue a prospectus. Not necessary to issue prospectus. 
c) Number of directorsMinimum three directors.Minimum two directors 
d) Transfer of shares Freely transferablePrior permission is required for transfer of shares. 
e) Minimum paid up capital Minimum paid up capital must be Five lakhs Minimum paid capital must be One lakh


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