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Article by Heino Meerkatt and John Rose From BOSTON CONSULTING GROUP
AMJAD HUSSAIN
REG NO: 3500-FMS-BBA-S12
PRIVATE LTD.
No. of members can be 2 to 50.
Minimum number of directors present should be 2.
Can accept deposit only from members, directors or their relatives.
Cannot invite public to subscribe for shares or debentures.
No limit on fees of directors.
Can restrict transfer of shares.
PUBLIC LTD.
No. of members can be 7 to unlimited.
Minimum number of directors present should be 3.
Can accept public deposits.
Can invite public to subscribe for shares or debentures.
Director should not get more than 11.5% of profit.
Shares are freely transferable.
, the value of private-equity deals worldwide grew at roughly 20 percent per year, as
funds from institution-al investors flowed into private equity on the expecta-tion that it
would deliver superior returns
. One reason investors expect higher returns from private equity is that it enjoys a
lower cost of capital owing to higher leverage and the easy availability of debt.
But a second key reason is that private equity offers a distinctive gover-nance model.
In many respects, that model is superior to the one found at most public companies
because it allows private-equity firms to drive changes in a com-panys fundamental
value-creation performance