1. Difference of Private Co. & Public Co.
Points
Private Co.
Public Co.
Minimum members
Maximum members
Capital (Minimum)
Prospectus of shares
(To raise capital) 2 50
1 lakh
Can’t be issued 7
Unlimited
5 lakhs
Can be Issued

2. Statutory requirement No restriction
Issue of Right Shares
Commence business
Statutory requirement
No restriction
Allot shares &commence business immediately after incorporation
Statutory act is not applicable
Strictly to abide by restriction
Commencement of business certificate is required granted by registrar
Statutory act is applicable for meeting & reports

3. Restriction on transfer of share
Adding words
Restriction on transfer of share
Directors
Minimum
Consent in writing to tack up qualification shares
Word “PRIVATE” written before word “LIMITED” at the end
AOA must provide restriction for it 2
Not applicable
Only “LIMITED” word written at the end
Share are free from such rest 3
Must be taken

4. He can vote on contract in which he is interested
Special restriction
Rotation
He can vote on contract in which he is interested
Several restriction imposed on public co. curtailing the powers of the directors do not apply here
The need not retire by rotation
He can not vote on contract in which he is interested
Directors have strictly to comply with all the statutory restrictions imposed by the act
They have to retire by rotation

5. It can pay any remuneration to management
Appointment by single resolution & permission
Remuneration
More than one director may be appointed by a single resolution, without the permission of Central Govt.
It can pay any remuneration to management
More than one director can not be appointed by a single vote, without the permission of Central Govt.
Managerial remuneration should not exceed 11%of the net profit of the company