Consider the following differences between a private limited company and a public limited company?
- While there is a complete restriction on transferability of shares in Private Ltd. Company, such restricts don't exist for public limited company
- A Private Limited Company needs to obtain a 'commencement of business' certificate before starting operations
Which of the above is / are correct?
The second statement is incorrect here. Public Ltd. Companies need to obtain a 'commencement of business' certificate before starting operations. Not required for Pvt. Ltd. Company.
This question is a part of GKToday's Integrated IAS General Studies Module