Differences between public and private companies in terms of structure and ownership/managerial relationships

Question

How does the relationship between shareholders, directors and management typically differ in a private company to that of a public company?

Answer 1

in public companies, shareholders are mainly the public.............

whereas in private companies the shares are mainly held among a close group (family, friends....)

its found that a large portion of the shares in private companies are held among the directors themselves

Answer 2

While basic management would be the same, in a private company, the CEO and upper level management is not answerable to shareholders and directors, since there typically are none (or if there are, they are usually one and the same).

Answer 3

This is a pretty good single "definition" for the Ownership part of your question:

" Usually, the securities of a public company are owned by many investors while the shares of a private company are owned by relatively few shareholders. "

The Structure of a company, no matter how it is owned and whether it is public or private, can vary enormously, partly due to what "business" it engages in and partly due to the individual tastes of the people involved.

Managerial Relationships also vary widely, depending on the people involved.