03-17-2006, 03:03 AM
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..
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..
