Private Company Reasons:
a. Number of directors: Only two directors are required in case of a private company whereas a public company requires minimum three directors.
b. Issue of prospectus: A private company does not invite the public to subscribe to its share capital. Hence, it doesn’t issue a prospectus.
c. Allotment of shares: Shares of a private company can easily be allotted without receiving a minimum subscription.
d. The control: and management is generally in the hands of the owners of capital which is not so in a public company.
e. A non-member: cannot inspect the copies of the P&L A/C filed with the Registrar