Fellows,
Can you people tell me the differences between public and private limited company at the time of formation and incorporation in companies ordinance 1984.If uou know the website then let me know otherwise paste the information here.
I will be very veryyyyyyy thankful.
Regards.
Hi
The main difference between a private company and a public company arises due to the following three clauses inserted into the articles of a private company, viz-a-viz
i) Restriction of the right of its members to transfer its shares, if any.
ii)Limitation of its members to 50 not including employed members.
iii)Prohibtion of any invitation to the public to subscurbe for its shares.
So, all of the three conditions should be inserted in the articles of association to form it a private company. If any of these three conditions is not inserted or missing it means that it is a public company. Moreover, these three conditions can also be termed as features of a private company.
ICAPians, the unparalleled..
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by adeelnasim</i>
<br />Fellows,
Can you people tell me the differences between public and private limited company at the time of formation and incorporation in companies ordinance 1984.If uou know the website then let me know otherwise paste the information here.
I will be very veryyyyyyy thankful.
Regards.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Apart from the three reasons posted by Ali in his post a private company can commence its business after the registrar has issued to it the certificate of incorporation after it has furnished the required documents to the registrar. On the other hand a public company cannot commence its business untill a business comencement certificate has been issued to it. Business comencement certificate is issued once the company has issued prospectus or filed a statement in lieu of prospectus.