Which company doesn't restricts the right to transfer its shares?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A Public Company
The right to transfer shares freely is what separates a public company from a private one. A private company restricts that right through its articles; a public company is defined as a company that is not a private company, so its shares are freely transferable.
Why the other options are incorrect
Option (1) Non-Profit Making Company — Incorrect. Being non-profit says nothing about the transfer of shares; such a company may itself be private.
Option (2) A Private Company — Incorrect. A private company is precisely the one whose articles restrict the transfer of shares.
Option (4) Both Private and Public Company — Incorrect. It includes the private company, which does restrict transfer.
NCERT (2026-27 edition):
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