Distinguish between Private Company and Public Company

This table outlines the key differences between Private Companies and Public Companies based on various parameters such as naming conventions, capital requirements, membership, share transferability, and regulatory obligations.

Sr.	Content	Private Company	Public Company
1	Company's Name	Company should contain words "Private Limited" at the end of its name.	Company should contain words "Limited" at the end of its name.
2	Paid up Capital	A company must have a Minimum Paid up capital of Rs. 1 Lakh	Whereas a public company must have Minimum Paid up capital of Rs. 5 Lakh
3	Minimum Number of Member	Minimum Number of Member required to form a private company is 2	Whereas a public company required at least 7 member.
4	Maximum Number of Member	Maximum Number of Member required in a private company is restricted up to 50.	Whereas there is no restriction of maximum number of member in a public company.
5	No. of Directors	Minimum No. of Directors present should be 2	Minimum No. of Directors present should be 3
6	Transferability of shares	There is completely restriction on transferability of the shares of a private company	Whereas there is no restriction on the transferability of the shares of a public company
7	Public Deposit	Private company can accept deposits from Members of Company, Directors and their relatives.    A private company is prohibited from inviting the public for subscription of its shares.   Private Company cannot invite public to subscribe for shares of debentures.	Public company can accept deposits from investors and company may have promotes of their shares.   A private company is free to inviting the public for subscription of its shares.   Private Company can invite public to subscribe for shares of debentures.
8	Consent of Directors	There is no need to give the consent by the directors of a private company	Whereas the directors of a public company must have file with the registrar a consent to act as director of a company
9	Prospectus	Statement in lieu of prospectus not required even for first issue.	Statement in lieu of prospectus Or Prospectus required.
10	Certificate to Commence business	A private company can commence its business immediately after receiving the certificate of incorporation.	Public company require both certificate - Certificate of incorporation and -Certificate to commencement of Business
11	Share warrants	A private company cannot issue share warrants against its fully paid shares	Whereas public company can issue share warrants against its fully paid up shares.
12	Right shares	A private company cannot issue right shares	A public company can issue right shares.
13	Minimum Subscription	A private company does not compile provision for minimum subscription.	A public company who wants to issue the new shares, requires to follow provision for minimum subscription. a public company need to raise 90% of issue amount within 60 days.
14	Statutory meeting	A private company has no obligation to call the statutory meetings of the member.	A public company must call the statutory meetings of the member within six month from the date of incorporation of business..
16	Quorum	The quorum consist 2 Member in case of private company.	The quorum consist 5 Member in case of public company.
17	Managerial Remuneration	No restriction in case if private company	Total Managerial Remuneration in the case of private company cannot excess 11% of the net profit.
18	Privilege	A private company enjoys some special privilege.	A private company cannot enjoys some special privilege.

Meaning and Characteristics of Company

Meaning :               (i) Company is an artificial person created by law.

                              (ii) Section 3(1) (i) of the company act, 1956 defines a company as: "A Company formed and registered under this act." 

Characteristics :

1. Separate Legal Entity: The Company has their own name so company is legal person according to company law. The company has independence corporate existence whereas The partnership firm has no Independence existence apart from its members.

2. Limited Liability: One of the most privilege of doing business under companies act 1956 is that the liability of the members are only extent of nominal value of shares which are held by members. It means shareholders are liable only for those shares which they held. They don’t require to pay more than held share.

3. Perpetual succession:

We know MD comes and takes retired, members and shareholder are going to changes, time by time. but this will not affect the operation the company. Even the death or insolvency of MD and Shareholders, does not affect the company.

4. Common Seal: It is very necessary to make the companies common seal after the formation of the company. The common seal is official signature of the company. All contracts made with company must be under the seal of the company. In case of absence of common seal of the company in any documents it will become unauthorized letter.

5. Transferability of shares: Shareholders are free to transfer their shares except in case of private limited company. Moreover shareholder may nominate the person for shares in case of accidental death or any other circumstance. In present time Companies prescribed forms stated First nominee and 2nd nominee.

6. Separate Property: In companies act 1956, company is a person who can contract with other party in manner of purchase or dispose of property. if company want to purchase any assets he should purchase the property in its own name

7. Capacity to sue : A company is a person so he can sue and be sued in its own name. in case of any fraud or crime committed by shareholder or third party, a company can sue that means company can take legal proceeding against the third party by its own name.

8.Share capital :In large scale company, it is necessary the fund is furnished by directors. the fund is called primary capital. It is necessary to check whether fund raiser company is in accordance with companies act or not.

Human Resource Management (For B.Com. Sem I Students)

What is HRM

Human Resource Management (HRM) means managing the people who work in a company. It’s about making sure employees are happy, skilled, and able to do their jobs well.

• HRM focuses on people because they are the heart of any company.

• Think of it as a team that helps workers and the company grow together.
  

Key Activities of HRM

HRM has several important jobs:

1. Hiring: Finding the right people to work in the company.

2. Training: Teaching workers new skills and improving their abilities.

3. Motivating: Encouraging employees to work hard by offering rewards.

4. Taking care of employees: Ensuring workers are happy and have fair pay and benefits.

5. Solving problems: Helping workers when they face challenges or disagreements.
   
   

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Slide 4: Why is HRM Important?

HRM is important because:

• Employees work better when they are happy and feel cared for.

• It helps the company achieve its goals by building a strong and skilled team.

• Solves problems so the workplace is peaceful and productive.

• Encourages teamwork and makes the company a better place to work.
  
  

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Real-Life Example

Imagine a school:

• The principal hires good teachers (Hiring).

• Teachers are trained to use new teaching methods (Training).

• They are praised when they do a great job (Motivating).

• If teachers have problems, the principal listens and helps (Solving problems).

• Everyone feels valued and works better as a team.
  
  

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Fun Fact

The idea of HRM started many years ago because companies realized that workers are more than just employees—they are the most valuable part of the organization!

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Conclusion

Human Resource Management (HRM) is all about:

• Taking care of people who work in a company.

• Helping them grow, solve problems, and feel valued.

• Building a happy, skilled, and successful team to help the company achieve its goals.
  Message: Happy workers lead to a successful company!
  
  

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Questions and Discussion

Let’s discuss:

• Why do you think workers need to be motivated?

• How can HRM solve problems in a company?