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what is the difference between public company and private
company
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Answer Posted / avik mukherjee
basically the differences are given in
149(7) private limited company is allowed to make business
immediately after its incorporation , public limited company
should wait for the LETTER OF OFFER
--Managerial remuneration : Total managerial remuneration
in the case of a Public Company cannot exceed 11% of the net
profits,calculated as per sec 349 &,350 and in case of pvt
company no such mandate 198(4)
Statutory meeting : A Private Company has no obligation
to call the Statutory Meeting of the member, whereas of
Public Company must call its statutory Meeting and file
Statutory Report with ROC sec 165(10)
Number of Directors : A Private Companysec 252 (2) may have 2
directors to manage the affairs of the company, whereas a
Public Company must have atleast 3 directors.sec 252 (1)
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