2. PUBLIC LTD VS PVT LTD
S. NO. PARTICULARS PRIVATE LTD. COMPANY PUBLIC LTD. COMPANY
1 MINIMUM MEMBERS 2 7
2 MAXIMUM MEMBERS 200 NO LIMIT
3 MINIMUM DIRECTORS 2 3
4 PROSPECTUS PROHIBITED ALLOWED
5 TRANSFER OF
SHARES/DEBENTURES
RESTRICTED FREE
6 MINIMUM CAPITAL RS. 1 LAC RS. 5 LAC
7 QUORUM 5 2
8 COMMENCEMENT OF
BUSINESS
IMMEDIATELY ON INCORPORATION AFTER OBTAINING CERTIFICATE
OF COMMENCEMENT OF
BUSINESS
9 STATUTORY MEETING NEED NOT HOLD HAS TO HOLD WITHIN
10 MANAGERIAL
REMUNERATION
NO RESTRICTION CAN NOT EXCEED 11%
3. OPC VS SOLE PROPRIETORSHIP
OPC SOLE PROPRIETORSHIP
1 LIMITED LIABILITY UNLIMITED LIAB
2 PERPETUAL SUCCESSION ENDS WITH DEATH OF OWNER
3 SEPARATE LEGAL ENTITY ENTITY LINKED TO OWNER
4 WINDING UP PROCEDURE CAN CLOSE BUSINESS EASILY
5 LIMITED REVENUE <2 CRORE, POST WHICH
CONVERTIBLE INTO PVT/PUBLIC LTD CO.
NO REVENUE LIMIT
6 DIVIDEND ENTIRE PROFIT BELONGS TO OWNER
7 AUDITS & SECRETARIAL RECORDS NO SUCH COMPLIANCE UNTIL REVENUE EXCEEDS 40 LAC
4. PVT LTD CO VS LLP
1. NO DIVIDEND IN CASE OF LLP
2. REGISTERED UNDER COMPANIES ACT VS LLP ACT
3. DIRECTORS – 2 TO 15 MAX. IN LLP MIN DESIGNATED PARTNERS 2
MAX NO LIMIT
4. MINIMUM 4 BOARD MEETINGS VS NO SUCH REQUIREMENT
5. MOA & AOA VS LLP AGREEMENT
6. STATUTORY AUDIT MANDATORY VS ONLY IF LLP HAS TURNOVER
EXCEEDING 40 LAC OR CAPITAL CONTRIBUTION EXCEEDING 25 LAC
7. HIGH LEGAL COMPLIANCES VS LESS COMPLIANCES
5. MOA VS AOA
MOA AOA
1 IT IS THE CHARTER OF COMPANY INDICATING NATURE
OF ITS BUSINESS, ITS NATIONALITY, ITS CAPITAL. IT
DEFINES THE COMPANY’S RELATIONSHIP WITH OUTSIDE
WORLD
IT IS ALSO A CHARTER BUT THEY ARE THE REGULATIONS
FOR THE INTERNAL MANAGEMENT OF THE COMPANY.
2 PRIME DOCUMENT SUBORDINATE TO MOA. IN CASE OF CONFLICT, MOA
PREVAILS
3 DEFINES SCOPE OF THE ACTIVITIES OF THE COMPANY OR
THE AREA BEYOND WHICH THE ACTIONS OF THE CO
CAN’T GO
THEY ARE THE RULES FOR CARRYING OUT THE OBJECTS OF
THE CO AS SET OUT IN MOA
4 EVERY COMPANY MUST HAVE A MOA NEED NOT HAVE. IN THAT CASE TABLE A APPLIES
5 STRICT RESTRICTIONS ON ALTERATION CAN BE ALTEED BY SPL RESOLUTION TO ANY EXTENT AS
LONG AS WITHIN MOA AND COMPANIES ACT
6 ANY ACT WHICH IS ULTRA VIRES THE MOA IS WHOLLY
VOID AND CAN NOT BE RATIFIED
ANY ACT ULTRA VIRES THE AOA BUT INTRA VIRES THE
MOA, CAN BE RATIFIED/CONFIRMED BY SHAREHOLDERS
6. CASES
1. 6 OUT OF 7 SIGNATURES WERE FORGED IN THE MOA. MOA WAS PRESENTED,
REGISTERED AND CERTIFICATE OF INCORPORATION ISSUED. CAN THE
EXISTANCE OF THE COMPANY SUBSEQUENTLY ATTACKED ON THE GROUND
THAT THE REGISTRATION WAS VOID?
2. THE PROMOTERS OF A CO, BEFORE INCORPORATION, ENTER INTO AN
AGREEMENT TO BUY SOME LAND FROM X ON BEHALF OF THE CO. AFTER
INCORPORATION, THE CO REFUSES TO BUY. DOES X HAS ANY REMEDY
AGAINST CO. OR PROMOTERS?
3. PROSPECTUS
1. MIS-STATEMENTS
2. BOUGHT FROM MARKET
3. ACTION AFTER 5 MONTHS
