A private company is one which.
(A) restricts the right to transfer share
(B) limits the number of members to 200
(C) must have at least 2 persons
(D) include a company which is subsidiary of public company.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is option 2- (A), (B) and (C) only.
Except statement (D) 'include a company which is subsidiary of public company', all are features of private company.
Private Company: A private company is one which by its articles of association:
- (a) Restricts the right to transfer its shares;
- (b) Limits the number of its members to 200 (excluding its employees);
- (c) A private company must have at least 2 persons, except in case of one person company.