Privileges of private company over public company:
1.Number of directors : Only two directors are required in case of a private company whereas a public company requires minimum three directors.
2.Issue of prospectus : A private company does not invite the public to subscribe to its share capital. Hence, it doesn’t issue a prospectus.
3.Allotment of shares : Shares of a private company can easily be allotted without receiving a minimum subscription. However, before issuing the shares to the public at large, a public company must receive minimum subscription.
4.Index of members : There is no compulsion for a ( private company to maintain an index of members. However, it is necessary for a public company to maintain such an index.
