Gf Difference Between Private And Public Company Structure Under The Corporations Act 
Difference between private and public company structure under the Corporations Act
Governance Foundations
(1) Types of companies
Public vs private
Type of company
Differences in regulation
Regulated by
Percentage of registrations
- Limited by shares
Sub-classified as small or large
ASIC
- Unlimited with share capital
Small =
Can be any size; some are very large - consolidated gross operating revenue < $25m - consolidated gross asset value < $12.5m
The majority of registered companies are proprietary. As at
March 2012, ASIC reports that there were 1,871,004 proprietary companies, representing 98.87% of all registered companies.
Unlisted –
The majority of registered companies are proprietary. As at
March 2012, ASIC reports that there were 1,871,004 proprietary companies, representing 98.87% of all registered companies.
Proprietary = private
Must have at least one member and up to a maximum of 50 nonemployee shareholders
By definition UNLISTED, as they are not allowed to raise capital that would require lodging a prospectus or offer information statement
Compliance requirements less stringent than for public companies
Can hold shares in listed companies - fewer than 50 f/t employees
Large = revenue, assets and employees greater than small companies Can offer shares to existing shareholders of the company or employees of the company or a subsidiary of the company
Proprietary companies must have at least one director and need not have a company secretary
Public = Ltd
Minimum of one member, but there is no maximum
- Limited by shares, eg commercial businesses Can be LISTED or UNLISTED
- Limited by guarantee e.g. charities, not-for-profits, clubs
The use of ‘Ltd’ does not distinguish
Limited by both shares and between them guarantee, eg private schools,
Can own Pty Ltd companies friendly societies
Public Unlisted and Listed
- Unlimited, eg professional
Companies can raise capital by practices offering a prospectus – reporting
- No liability (NL)
Governance Foundations
(1) Types of companies
Public vs private
Type of company
Differences in regulation
Regulated by
Percentage of registrations
- Limited by shares
Sub-classified as small or large
ASIC
- Unlimited with share capital
Small =
Can be any size; some are very large - consolidated gross operating revenue < $25m - consolidated gross asset value < $12.5m
The majority of registered companies are proprietary. As at
March 2012, ASIC reports that there were 1,871,004 proprietary companies, representing 98.87% of all registered companies.
Unlisted –
The majority of registered companies are proprietary. As at
March 2012, ASIC reports that there were 1,871,004 proprietary companies, representing 98.87% of all registered companies.
Proprietary = private
Must have at least one member and up to a maximum of 50 nonemployee shareholders
By definition UNLISTED, as they are not allowed to raise capital that would require lodging a prospectus or offer information statement
Compliance requirements less stringent than for public companies
Can hold shares in listed companies - fewer than 50 f/t employees
Large = revenue, assets and employees greater than small companies Can offer shares to existing shareholders of the company or employees of the company or a subsidiary of the company
Proprietary companies must have at least one director and need not have a company secretary
Public = Ltd
Minimum of one member, but there is no maximum
- Limited by shares, eg commercial businesses Can be LISTED or UNLISTED
- Limited by guarantee e.g. charities, not-for-profits, clubs
The use of ‘Ltd’ does not distinguish
Limited by both shares and between them guarantee, eg private schools,
Can own Pty Ltd companies friendly societies
Public Unlisted and Listed
- Unlimited, eg professional
Companies can raise capital by practices offering a prospectus – reporting
- No liability (NL)