Practicing Success
Which of the following is not a correct statement regarding to private company? |
Restricts the right of members to transfer its shares Minimum 2 member A maximum of 100 members, excluding the present and past employees Not invite public to subscribe to its securities |
A maximum of 100 members, excluding the present and past employees |
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: 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. |