Which of the following is not a correct statement regarding to private company?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A maximum of 100 members, excluding the present and past employees.
* The maximum number of members is 200 not 100.
A private company means a company which:
(a) restricts the right of members to transfer its shares;
(b) has a minimum of 2 and a maximum of 200 members, excluding the present and past employees;
(c) does not invite public to subscribe to its securities and
It is necessary for a private company to use the word private limited after its name. If a private company contravenes any of the aforesaid provisions, it ceases to be a private company and loses all the exemptions and privileges to which it is entitled.