Question

What are the various privileges available to a private company over the public company ?

Answer 1

Privileges available to private company over public company :

(a) A private company can be formed by only 2 members whereas 7 (seven) people are needed to form a public company.

(b) There is no need to issue prospectus as public is not invited to subscribe to the shares of a private company

(c) A private company is not required to keep an index of members while the same is necessary in the case of public company.