A company that possesses the characteristic of a company is known as public company or public limited company. This types of company is publicity held, the public can acquire, own, and sell the shares of such types of company at their wishes. The company can issue prospectus to the subscribe the shares and debentures of the company and, thus, can collect for the company. Minimum number of shareholders of this company is save and the maximum number may be any number, which depends upon the decision of the promotes of the company in dividing the share capital and its issue and subscription, the maximum number is the number of shareholder of any company.
Features of Public Limited Company
- Minimum number of shareholder is seven and maximum numbers can be any number.
- It is compulsory for these types of company to issue prospectus or statement in lieu of prospectus and submit a copy to the registrar.
- The minimum of directors for these types of company is three.
- after getting ‘Certificate of Incorporation ‘ , Public company must obtain ‘ Letter of Commencement of business ‘to start operation.
- The company must collect minimum subscription to get’ Letter of commencement of business.
- It cannot allot shares before getting application for minimum subscription.
- Its share is freely transferable. Shares can be transferred to any one competent to contract.
- This company must convene statutory meeting after the receipt of Letter of Commencement of Business ‘ and submit a copy to the registrar.
- The word Limited should be written after the name of sues company.
- The Directors of such company must be compulsorily elector periodically.
- The edified audition (professional or public accountant /Chartered Accountant -CA in Bangladesh -ICAB) must audit the annual accounts of such company.
- Copy of audition account and balance sheet of this company this must be submitted to the registrar of companies and the shareholder.
- The Directors of this company mist call ‘ Annual General Meeting – A GM’ regularly and announce annual Statement of activates .
Private Limited Company
Company that is privately held is called limited company; This Company can never be held like a public limited company and must operate under certain restriction.
Features of a private q Limited Company:
- Minimum number of shareholders is and maximum number is fifty.
- This company cannot issue prospectus or statement in lieu of prospectus.
- The minimum number of directors for these types of company is two.
- After getting Certificates of Incorporation, these types of company can start operation and need not to get Letter of Commencement of business to start operation.
- It is not compulsory for this types of company to collect minimum subscription.
- It can allot shares before collection of any amount to of subscription.
- Its share is not freely transferable share can be transferred to the existing shareholder.
- This company needs not to converge statutory meeting.
- The word private Limited should be such writing.
- The election of such company is not company is not compulsory.
- The audition accounts of such company needs not to be done by a certified auditor.
- Copy of accounts and balance sheet of this company need not be compulsorily submitted to the registrar of shareholder.
- The directors of this company need not call Annual General Meeting regularly and announce annual statement of activates.