-Difference-Between-Private-and-Public-Company-

Difference between private and public company

structure under the Corporations Act

Governance Foundations

(1) Types of companies

Public vs private

Type of company

Differences in regulation

Regulated by

Percentage of registrations

- Limited by shares

Sub-classified as small or large

ASIC

- Unlimited with share capital

Small =

Can be any size; some are very

large

- consolidated gross operating

revenue < $25m - consolidated

gross asset value < $12.5m

The majority of registered

companies are proprietary. As at

March 2012, ASIC reports that

there were 1,871,004 proprietary

companies, representing 98.87% of

all registered companies.

Unlisted –

The majority of registered

companies are proprietary. As at

March 2012, ASIC reports that

there were 1,871,004 proprietary

companies, representing 98.87% of

all registered companies.

Proprietary = private

Must have at least one member

and up to a maximum of 50 nonemployee shareholders

By definition UNLISTED, as they

are not allowed to raise capital that

would require lodging a prospectus

or offer information statement

Compliance requirements less

stringent than for public companies

Can hold shares in listed

companies

- fewer than 50 f/t employees

Large = revenue, assets and

employees greater than small

companies

Can offer shares to existing

shareholders of the company or

employees of the company or a

subsidiary of the company

Proprietary companies must have

at least one director and need not

have a company secretary

Public = Ltd

Minimum of one member, but there

is no maximum

- Limited by shares, eg commercial

businesses

Can be LISTED or UNLISTED

- Limited by guarantee e.g.

charities, not-for-profits, clubs

The use of ‘Ltd’ does not distinguish

Limited by both shares and

between them

guarantee, eg private schools,

Can own Pty Ltd companies

friendly societies

Public Unlisted and Listed

- Unlimited, eg...