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Differences between private limited company and public limited company are;Private limited company is formed by minimum of 2 shareholders while public limited company is formed by minimum of 7 shareholders.Private limited company has maximum of 50 shareholders while public limited company has no maximum number of shareholders.Private limited company commences immediately it receive certificate incorporation while public limited company waits for certificate of trading.Private limited company, shares are not freely transferable while public limited company shares are freely transferable.Private limited company is not a must for books of account to be audited while public limited company, books of account are audited annually.Private limited company cannot draw prospectus while public limited company must prepare a prospectus.
Role of a company secretary in a private company include;To be at all meetings including board meetings and take minutes of such proceedingsTo issue notices of the meetings to members and other.To countersign instruments to which the company seal has been affixed.To conduct and record transfers of shares and conduct correspondence with shareholders as regard calls, transfers, forfeiture.To keep books of the company, particularly those relating to the internal administration of the company e.g shares register and register of charges.To make all the returns of the company e.g the annual returns, notice of special resolutionFor quoted companies he ensures compliance with Nairobi Stock Exchange and Capital Markets Authority Requirements.For banks he ensures compliance with Central Bank of Kenya statutory requirements
Differences between public corporation and a public limited company include;Public corporation is formed under the act of parliament while Public limited company is formed under the company‘s act.Public corporation is fully owned by the government while public limited is Owned by private persons who own shares.Public corporation's initial capital is provided by the state or through state guarantees while public limited's Capital obtained through issue of shares, selling of debentures or other loansPublic corporation management is appointed by the government (Board of directors) while public limited directors elected by the shareholders.Public corporation is set – up to offer essential services to the public while public limited is formed to make profit.Public corporation, the profit made rest on the parliament while public limited, the profits rest with the shareholders or creditors.Public corporation performs specific functions and related activities while public limited performs various functions.
The recent law in Kenya allows for the formation of a private limited company in Kenya by one or more person. A limited company in Kenya is allowed to have one director or member with 100% shares. However, a company should not have more than 50 members.
Characteristics of a good filing system are;Easy to accessShould be compatibleShould be safeShould be economicalShould be expandableShould be economical on space