State any four privileges of a Private Company as against a Public Com

1.	State any four privileges of a Private Company as against a Public Company.
Answer» 1. A private company is simpler to form than a public company. It needs two directors while a public company needs three. 2. It can start business immediately after incorporation, no certificate to commence is required but in a public company it is necessary to have a certificate to commence business. 3. Since a private company collects the requisite capital by private arrangement and does not invite the general public to buy its shares by the issue of a prospectus, it may allot shares without following the formalities of a public company. 4. As no outsiders are its shareholders it is not required, unlike a public company, to hold a statutory meeting.

State any four privileges of a Private Company as against a Public Company.

Answer»

1. A private company is simpler to form than a public company. It needs two directors while a public company needs three.

2. It can start business immediately after incorporation, no certificate to commence is required but in a public company it is necessary to have a certificate to commence business.

3. Since a private company collects the requisite capital by private arrangement and does not invite the general public to buy its shares by the issue of a prospectus, it may allot shares without following the formalities of a public company.

4. As no outsiders are its shareholders it is not required, unlike a public company, to hold a statutory meeting.

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