What is the difference between a public corporation and a private limited company form of business?

Explain the features that differentiate a public corporation from a private limited company form of business.

(i) Profits are issued to dividends and the government to the members in public corporation while profits are distributed and the shareholder on dividends for private limited company.

(ii) For public corporation,it is non-profit motivated while private limited company is established to earn profits.

(iii) For public corporation, the initial capital is usually provided by the government while for a private limited company the initial capital comes from the shareholders.

(iv) A public corporation is established through legislation by an Act of parliament while a private limited company is established by promoters according to the company’s Act.

(v) A public corporation is managed by a board of directors appointed by the government while a private limited company is managed by one or two directors elected by shareholders.

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maurice.mutuku answered the question on June 28, 2017 at 11:28

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