According To Pakistan Company Law, What Are The Legal Exemptions That A Private Company Enjoys Over A Public Company?

There are certain legal concessions that come in the share of a private company as opposed to a public company, which has to fulfil all fiats and abide by all legal guidelines to avoid any kind of troubles. Ergo the legal exemptions that a private company scores as a definite advantage are classified as follows:

The formation of a private company only requires two persons to act as signatories for the Memorandum of Association. Moreover a private company does not require more than two members for its establishment as opposed to a public company that requires three or more members. Also there is no need for holding a statutory meeting for the purpose of formulating and establishing a statutory report in the case of a private company. In addition to that, unlike a public company, a private company is not required by law to file a statement instead of a prospectus. Lastly a private company has the absolute advantage of commencing the business and executing the process of garnering capital without the hurdle of any legal constraints.

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