In Australia, a proprietary company is defined under section 45A(1) of the Corporations Act 2001 (Cth).
The Act states in which circumstances a company must issue a prospectus when attempting to raise funds.
The differences here relate to issues such as operating revenue, consolidated gross assets, and the number of employed persons.
Large proprietary companies are required to appoint an auditor and lodge appropriate financial statements with the Australian Securities & Investments Commission.
Small proprietary companies only have to prepare audited financial statements if ordered to do so by Australian Securities & Investments Commission or members holding five percent of voting shares and, in some cases, if controlled by a foreign company.