Question

A private limited company enjoys some privileges as against a public limited company. Comment.

Answer 1

Dear student,

Some of the privileges enjoyed by the private limited company as against a public limited company are:

1) Minimum number of members in private company are 2 as against 7 in public company.
2) A private company do not require certificate of commencement.
3) A private company is not required to issue prospectus or statement in lieu of prospectus.
4) A private company is not required to hold statutory meetings.
5) There is no limit on remuneration of managers and directors of a private company.

Regards