Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

Which section of the Companies Act, 2013 describes Private Placement of shares?

Options:

41

42

43

44

Correct Answer:

42

Explanation:

The correct answer is option 2- 42.

The Companies Act, 2013 (Section 42) describes Private Placement as an offer of securities or invitation to subscribe securities to a select group of persons through the issue of private placement offer letter.