Explain the advantages of a private company over a public company

Explain the advantages of a private company over a public company

ANSWER

1. Subscribers are in a position to control membership.
2. Transfer of shares is restricted, members determine who may join.
3. It is the best vehicle for family business.
4. Subject to less statutory formalities e.g. need not publish annual accounts or hold the statutory meeting.
5. Entitled to commence business on the date of incorporation.