Difference Between Private and Public Limited Company

28 May, 2019

General Difference Between Private and Public Limited Company as Per Companies Amendment Act 2017

In this article, we will discuss about the difference between Private and Public Limited Company. A public limited company which accepts deposit from the Public whereas private limited cannot do so.

General Difference Between Private and Public Limited Company as Per Companies Amendment Act 2017
S.No	SECTION AND ITS PROVISION	PUBLIC LIMITED COMPANY	PRIVATE LIMITED COMPANY
1	Section 117 for the filing of resolutions passed by Board in BM under section 179(3) read with Rule 8	Required to be filed	Not required to be filed. Private Limited company are exempted from filing under this section i.e., the exemption granted through a notification dated 5^th June 2015
2	Section 180 related to the sale, lease or dispose of the whole or substantially the whole of the undertaking of the company Related to borrowing	Shareholders’ approval by way of Special resolution in general meeting is required	Shareholders’ approval by way of SR not required, only Board resolution is enough
3	Section 160 Related to deposit of security deposit at the time of proposing the candidature of a person as a Director	Required to be deposited	Not required
4	Section 162 Related to unanimous shareholders approval at a meeting for considering the appointment of two or more directors by a single resolution	Required	Not required
5	Section 184 Related to ‘interested director’ participation in the concerned matter in a proposed Board meeting in which he/she is interested	Cannot participate	Can participate after giving disclosure of such interest in form MBP-1
6	Section 185 Related to loans to Directors	Cannot give loans to Directors and firm in which director or relative is a partner	Cannot give loans to Directors and firm in which director or relative is a partner
7	Section 196(4) and (5) Related to the appointment of MD, WTD, Manager subject to the approval of shareholders by resolution at next GM and by CG if the appointment is in terms of schedule V Also filing of form MR-1 within 60 days of Appointment	Applicable Applicable	approval of shareholders not required i.e., the exemption granted through a notification dated 5^th June 2015 Not applicable
8	Section 73 Acceptance of deposits from members and their relatives	Cannot accept	Can accept from directors and their relatives
9	Section 152(6) Related to the retirement of Directors by rotation	Applicable	Not applicable
10	Section 161(4) Related to a casual vacancy inboard to be filled by director	Applicable	Not applicable
11	Section 177 Audit Committee	Paid Up Capital of 10 Cr. Or turnover of 100 Cr. Required to constitute a audit committee not Applicable
12	Section 178 Nomination & Remuneration Committee	Paid Up Capital of 10Cr. Or turnover of 100 Cr. OR Outstanding Loans & Borrowings exceeds 50 Cr. Required to constitute a Nomination & Remuneration CommitteeNot Applicable
13	Section 177 Vigil Mechanism	Company which accept deposit from the Public; Borrowed money from Banks and Public Financial Institution in excess of 50 Cr.	Not Applicable
14	Section 149,152 Applicability of appointment of Independent, a Woman director	Applicable but subject to certain prescribed limits	Not applicable
15	Certification by PCS through Form MGT-8	Every Company having Paid up share capital of Rs. 10 Cr. Or more or having Turnover of Rs. 50 Crore or more	Every Company having Paid up share capital of Rs. 10 Cr. Or more or having Turnover of Rs. 50 Crore or more