Solution 12.4 

Limited liability      
Both a private and a public company can have limited liability restricting owners loss to that invested in the company should the business fail.

Audit of accounts   
 Both a private and a public company are required to have an annual audit.

Filing of reports      
Both a private and a public company must register annual accounts.

Shareholders          
A private company can have between 2 and 50 shareholders while a public company must have a minimum of 7 with no upper limit.

Transfer right         
The right of transfer is limited in a private company but is not restricted in a public company

Public subscription  
Public subscription is prohibited in a private company but not in a public company.

Stock exchange      
A private company is not quoted on the stock exchange whereas a public company may be.

Public information   
The level of information required to be made available to the public is more detailed for a public company.