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Similarities & Differences between Private & Public Limited Compnay
Transcript of Similarities & Differences between Private & Public Limited Compnay
Separate legal entity from its shareholders
Controlled by a board of directors
Salaried managers employed to manage the business
Subject to corporate tax on profits earned. Shares are not transferable.
Easier and less costly to form.
Minimum of 2 and a maximum of 50
The limit of shareholders is subject to a restricts its capital resources.
Secure family control
Director must be a share holder
keep its balance sheet private PUBLIC: Invite members of public to subscribe to shares which are freely transferable
More difficult and costly to form.
Minimum 2 and there is no maximum limit.
It can raise more capital and expand the business.
Control by shareholders with the largest shares.
Directors need not be shareholders
Require to publicize its balance sheet.