A Private Company is defined by section 3(i),(iii) of the Companies Act,1956 as a company which by its Articles of Association.
There is a Limit for members in Private companies like 2 to 50 and not include persons who are or were in the employment of the company joint holders of the shares shall be treated as a single member.
It Prohibits any invitation to the public to subscribe for any shares in or debentures of the Company.
It Restricts the right to transfer its shares and it paid capital up to 1 lakh or above.
A private Company is Compulsorily required to have articles of Association. They are necessary if not for anything else, to embody, the above restrictions. Such a company must add the word ‘private ‘ in its name.
Private Company Enjoys certain advantages and Exemptions.
In Contrast to the Public Enterprise, Private Enterprise is the one where the management of the enterprise is in the hands of the individuals.Maximization of Self-fain is the objective of enterprise
Public enterprise is that enterprise in which government.Itself is engaged in producing and selling goods and services.Tese enterprise are entirely owned and controlled by the state.The Basic objective of Public enterprise is not maximasation of Profit but Maximisation of Social welfare.
Public Corporation is a Corporate Body established by a public authority with certain powers and functions and it is financially independent, It is administrated by a broad appointed by the authority to which it is answerable and it is very similar to the Public Company, derived but its stockholders retain no equity interests deprived of voting rights and power of appointment of the board.
Some Important Public Corporations are
- Damodar Valley Corporation.
- Industrial Finance Corporation.
- Air India
- The State of India.
- Oil and Natural Gas Corporation
- Industrial Development Bank of India
- State Trading Corporation.
- Food Corporation of India
- Central Warehousing Corporation.
- Indian Airlines
- Reserve Bank of India.