Question 18 of 18intermediate✨ CreateEssay5 marks

Divide students into teams to work on the following: To study the profiles of any five companies (inclusive of both private and public companies)

Correct Answer

To study the profiles of five companies (inclusive of both private and public companies), the project involves analyzing and comparing the key features of selected companies.

First, select five companies ensuring a mix of both private companies and public companies. For each company, study the basic profile including the number of members, number of directors, and nature of share transfer.

For private companies, examine whether the company restricts the right of members to transfer shares, has a minimum of 2 and maximum of 200 members, and does not invite the public to subscribe to its securities. Note that private companies need only two directors and are not required to keep an index of members.

For public companies, study whether the company has a minimum of 7 members with no maximum limit, has no restriction on transfer of securities, and can invite the public to subscribe to its shares. Public companies require a minimum of three directors and must maintain an index of members.

Finally, prepare a comparative analysis highlighting the differences between private and public companies based on parameters like number of members, directors, share transfer rights, and invitation to public for subscription of securities.

Exercise: EXERCISES - Projects | Q: 5 | (Page 30)
For More Understanding

Explanation

This is a project-based question where students need to practically study company profiles. The answer provides a structured approach for the project using the textbook context about differences between private and public companies. Key parameters for comparison include members (2-200 for private vs minimum 7 for public), directors (minimum 2 for private vs 3 for public), share transfer restrictions, and public subscription rights.

Solution Steps

  1. Step 1: Select five companies with a mix of private and public companies

  2. Step 2: Study the number of members and directors for each company

  3. Step 3: Analyze share transfer rights and public subscription provisions

  4. Step 4: Compare whether index of members is maintained

  5. Step 5: Prepare a comparative table showing differences between private and public companies