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What is the difference between a “private corporation” and a public corporation?

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Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/05/22
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Private corporation is a corporation in which the stock is issued to a limited number of shareholders and is not available to the public.

 

Public corporation is one that is authorized to sell its stock to the public.

 

Shoaib Rehman
by Shoaib Rehman , Senior project manager , Etisal

private companies have limited finances and liabilities as well as limited paid-up capital.

 

public limited company floats shares in the market and have a board of director and public stakeholder in the management decision. 

 

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

  and we can say simply its "one man show " can deside every thing@privite like family Co & L.T.D Co

Public: have a stock and board of director and vote for desicion making

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Public corporations sell stock to the public on an exchange.

In private companies/corporates, the senior management, key employees, and other individuals closely associated with the business are typically the stockholders.

A Private Compnay is one which restricts the rights to transfer it's shares if any. The shares are not easilty transferable i.e. there are restricitons on change in ownership of shares. Shares can not be floated or offered to public through a stock market. Private company is not eligible for listing in stock market.

 

A Public Company on the other hand does not restrict transfer of shares. Change of ownership of shares is easy. Shares can be offered to public and can be floated in a stock marekt in which the company is lsted.

 

Both comapnies have limited liability.

HANNA SABA
by HANNA SABA , Team Leader (Administrative Support), including translation, editing, and writing , Deloitte

I think the question has already been answered adequately.

Mohamed Elsayed Abdelrazek Ali
by Mohamed Elsayed Abdelrazek Ali , Senior Credit Analyst , Banque Misr

Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors. A public company, on the other hand, is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning shareholders have claim to part of the company's assets and profits.

Ravi Chhantel
by Ravi Chhantel , Assistant Finance Manager , Tiger Palace Resort

NOTE:corp. = corporation

There is a lot of difference betwee private and public corporation.They are: 

  1. public corp. write "plc" but private corp.write "pvt. ltd"
  2. public corp.'shareholders are public but private corp.'shareholders are generally family members.
  3. No. of shareholders in public corp. must be more than50 but in private, it must be at least be7.
  4. annual report of public corp. must be published in newspaper or in company websites but there is no such requirement for private corp.

Abdul Wahab
by Abdul Wahab , Credit Controller / Analyst - Group , Al-Jazeera Paints Factory

Public Corporation A company whose securities are traded on a stock exchange and can be bought and sold by anyone

Private Corporation A company whose ownership is private. As a result, it does not need to meet the strict Securities and Exchange Commission as Public corporation.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

 In a private corporation there are only a few closely held stockholders that may run the company

In a public corporation there are usually many stockholders that do not perform management functions for the business. It is called a public corporation because the stock is publicly traded on the stock market.

Private corporation has limited capital as per the memorandum of Association.

Whereas the Public corporation has shares and debentures from public as per the Companies Act.

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