Comparison between a Private & Public Limited Company under

Companies Act, 2013

The Companies Act of 2013 has done away with the relaxation to private companies in
several provisions. The concept of not applicable to private company is no more in
existence in the Act of 2013. Such a move in the Companies Act of 2013 has taken away
certain privileges enjoyed by private companies. The privileges are of two types. One is for
the directors and to their interest and the second one is for the private company itself. The
Directors were hitherto enjoying certain pleasure from the application of certain provisions
are now withdrawn. Further, the Companies Act, 2013 have mandated certain new
requirement like that of internal audit to both public and private companies.
Brief Description

Private Limited
Company

Public Limited
Company

Name of the
Company

Private Limited as
Last Word

Public Limited as
Last Word

Provision of
entrenchment in the
Articles

To be agreed and
approved by all the
members

To be agreed and
approved through a
Special Resolution

Issue of Securities

By way of Right Issue

or Bonus Issue
Through Private
Placement

To Public through
Prospectus (Public
Offer)By way of
Right Issue or Bonus
Issue Through Private
Placement

Acceptance of
Deposits

Not allowed to accept

deposit

Allowed if Paid up
share capital is Rs.
100 Crore or more or
Turnover of Rs. 500
Crore or more

Quorum of Meetings

Two members
personally present

Five in case of
Members
upto
1000;Fifteen in case
of Members more
than
1000,
upto
5000;Thirty in case of
Members
exceed
5000.

No. of Directors and

Independent Directors

2 (Two);Not required
to appoint
independent director

3 (Three); and In case

of Listed Companies,
at least One-Third as
independent

Contract of
Employment with
Managing Director /
Whole Time Director

Not Required
(Optional)

Compulsorily
Required

Restriction on
Managerial
Remuneration

No restriction on
amount of managerial
remuneration

Managerial
Remuneration
is:
Restricted to 11% of
Net profit (subject to
conditions); OR at
least Rs. 30 lakh p.a.
depending upon paid
up capital

Capital
Minimum Capital :
Rs. 100000

Minimum Capital : Rs.

500000

10

Provision of
entrenchment in the
Articles

To be agreed and
approved by all the
members

To be agreed and
approved through a
Special Resolution

11

Securities in Public
Offer to be listed in
Stock exchanges

Not Applicable

Securities offered in
Public Offer, to be
listed in Recognised
Stock Exchanges