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.
Public Company: A public company means a company which
- (a) is not a private company;
- (b) is a company which is not a subsidiary of a private company.
Private Company: A private company is one which by its articles of association:
- (a) Restricts the right to transfer its shares;
- (b) Limits the number of its members to 200 (excluding its employees);
- (c) A private company must have at least 2 persons, except in case of one person company.