As the name states of the foregoing type either private limited companies (LTDs) or Public Limited Company Plc ,,One can come across many differences between the two.
A company limited by share where liability of it’s member’s is limited by the memorandum to the amount if any unpaid on the share respectively hold by them
Private Limited Company “LTD”
1. A private Limited Company LTD is one which is stated in it’s memorandum to be a private company.
2. Every private company shall by it’ article restrict the transfer of it’s share
3. The total number of members of a private company shall not exceed 50,not including person who are bona fide in the employment of the company or were in that employment and have continue after the determination of the employment to be members of the company.
4. where two or more person, hold one or more shares in a company jointly ,they shall for the purpose be treated as single member.
5. A private company shall not unless authorized by law invite the public to
a] Subscribe to any shares or debenture of the company
b] deposit money for fixed period payable at call whether or not bearing interest.
Public Limited company “PLC”
1. The name of public limited company by share shall end with the word public limited company or PLC”
2. The shares of a PLC can be sold to the general public, and they can also be listed on the stock exchange.
3 public limited company are the only companies that are allowed to raise capital through this form of public investment.
4. The is no restriction in relation to the members except that members shall not be less than two persons.
5 Public Companies must have a minimum authorized share capital of N500,000
6 A company listed on the floor of the Nigerian Stock Exchange must be a Public Limited
How do you change a private company to a public company?
A private company can be convert into public company by re-registration,… A special resolution coupled with an application delivered to the commission for re-registration is required to accomplish the objective