Compare and contrast the private limited company with the public limited company.

Answer Details

Both are joint-stock companies formed by registration (incorporation) under the Companies Act, so they share several features before we look at their differences.

Similarities. Each is an incorporated body with a separate legal personality from its owners; the shareholders enjoy limited liability (they lose only what they invested); each has perpetual succession (it continues despite death of members); each is owned by shareholders but run by a board of directors.

Differences.

Examination takeaway: a "compare and contrast" answer must give both the shared features and the point-by-point differences on the same characteristic (membership vs membership, shares vs shares); a table earns marks cleanly.