Public Vs Private Companies

Here are ten key differences between public and private companies in Nigeria based on the Companies and Allied Matters Act (CAMA):
*. Ownership:
- Public: Owned by shareholders who can trade shares publicly.
- Private: Owned by a small group of investors or individuals.
*. Capital Raising:
- Public: Can raise funds by issuing shares to the public.
- Private: Raises funds through private means or loans.
*. Regulation:
- Public: Subject to strict regulations and compliance under CAMA.
- Private: Faces fewer regulatory requirements.
*. Disclosure:
- Public: Must disclose financial statements and other significant information publicly.
- Private: Limited disclosure obligations.
*. Board of Directors:
- Public: Typically has a larger, more formal board structure with independent directors.
- Private: Smaller, less formal board structure.
*. Stock Exchange Listing:
- Public: Listed on the Nigerian Stock Exchange.
- Private: Not listed on any stock exchange.
*. Shareholder Meetings:
- Public: Required to hold annual general meetings for shareholders.
- Private: Not required to hold annual general meetings.
*. Initial Public Offering (IPO):
- Public: Can go public through an IPO.
- Private: Does not offer shares to the public.
*. Reporting:
- Public: Must file regular reports with the Corporate Affairs Commission.
- Private: Minimal and less frequent reporting requirements.
*. Transparency:
- Public: High level of transparency required.
- Private: Operates with more confidentiality.
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