Practicing Success
Practicing Success
CUET Preparation Today
| Which statement is correct in respect of a private company? |
Restrictions on appointment and reappointment of managing director do not apply. Maintaining of index of members is required. Â Directors of the private company need to have qualification shares. All the above |
| Restrictions on appointment and reappointment of managing director do not apply. |
|  
A substantial number of entrepreneurs prefer to form a private company because of the following important privileges: 1) Only two members are required to form a private company. 2) Only two directors are required to constitute the quorum to validate the proceedings of the meetings. 3) Such company can file a statement in lieu of prospectus with the Registrar of Companies. 4) It can commence its business immediately after incorporation. 5) Holding of a statutory meeting or filing of a statutory report is required by a private company. 6) A non-member cannot inspect the copies of the profit and loss A/c filed with the Registrar. 7) Limit on payment of maximum managerial remuneration does not apply to a private company. 8) Restrictions on appointment and reappointment of managing director do not apply. 9) Maintaining of index of members is not required by a private company. 10) Directors of the private company need not have qualification shares. |
