Which of the following company, by its articles, restricts the right to transfer its shares?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Private Company.
Private Company by its articles, restricts the right to transfer its shares.
A private company is one which by its articles of association:
- (a) Restricts the right to transfer its shares;
- (b) A private company must have at least 2 persons, except in case of one person company;
- (c) Limits the number of its members to 200 (excluding its employees).