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What is the difference between a public company and a private company? ( 2 Marks)

What is the difference between a public company and a private company? ( 2 Marks)

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Answer #1

there should be 7 or more person to form a public co.

a public co. may issue securities -

a) to public through prospectus by complying with the required provision.

b)through private placement by complying with the required provision

c)through a right issue or a bonus issue in accordance with the provisions of this act and in case of a listed company or a co. which intends to get its securities listed also with the required provision.

there should be 2 or more person to form a pvt co. except opc

a private co. may issue securities-

a)by way of rights issue or bonus in accordance with the provision of this act; or

b)through private placement by complying with the required provision .

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