There are two sectors in which a company may operate:
- Public Sector
A company operates in a public sector is known as a public company that means it is a company not owned by a private sector. There are two types of public companies:
- Public Listed Companies
A company whose shares are owned by general public and are available for trade on stock exchange under the rules and regulations of stock exchange is knows as a Public Listed Company.
- Public Unlisted Companies
A company whose shares are not offered to general public and whose shares are not available for trade on stock exchange is referred to as Public unlisted company. It is more likely similar to a normal company with an exception to greater number of shareholders.
- Private Sector
A company privately owned by a person or a group of persons is known as “Private Company”. There are two types of private companies:
- Single Member Company
A company having a single member / subscriber is known as a single member company. That single member also acts director of the company. This company is also governed by Securities and Exchange Commission of Pakistan under specific guidelines and in such companies (SMC-Private) Limited is added to the name of the company.
- Other than Single Member Company
A company having two or more members, restricted up to 50 members, of a private sector falls within this category. In such company, a member is restricted the right to transfer the shares. Also the invitation of subscriptions from General Public is restricted.
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