Public and private company

3.classification on the basis of number of members:

From the point of view of the general public and on the basis of number of members, a company may be-

1.a private company, or

2.a public company.

1.private company:

A private company is normally what the Americans call a ‘close corporation’ a private company means a company which has a minimum paid up capital of rs.100000 or such higher paid up capital as may be prescribed.

2.public company:

A public company means a company which-

a)has a minimum paid up capital of rs. 5lakh or such high paid up capital.

b)is a private company which is a subsidiary of a company which is not a private company.