One  of  the  differences  between  the  public  and  private  limited  companies  is

One of the main differences between public and private limited companies lies in ownership and share distribution.

1. Ownership:

   • Public Limited Company: The shares of a public limited company are open and sold to the general public, typically through a stock exchange, which allows anyone to buy a part of the company.
   • Private Limited Company: The shares are privately held and only a few people own and control the company. These shares are not available to the public.

2. Share Distribution:

   • Public Limited Company: Shares can be freely traded in a public limited company. There is no restriction on the transferability of shares.
   • Private Limited Company: There are restrictions on the transferability of shares in a private limited company. The shareholders cannot sell their shares without the approval of other shareholders.

3. Number of Shareholders:

   • Public Limited Company: There is no limit on the number of shareholders.
   • Private Limited Company: The number of shareholders is limited to 200.

4. Disclosure:

   • Public Limited Company: They are required to disclose their financial statements to the public to ensure transparency.
   • Private Limited Company: They are not required to disclose their financial statements to the public.

5. Management:

   • Public Limited Company: Shareholders elect a board of directors to manage the company. The board hires professional managers to run the company.
   • Private Limited Company: Often, the owners are the managers in a private limited company.

These are some of the key differences between public and private limited companies.