Which of the following is not a feature of a private company ?

The correct answer is Option (1) → Limits the number of its members to 200 (including its employees);

A private company, by its articles, restricts the transfer of its shares, needs at least 2 persons (except a one person company) and limits its members to 200 excluding its employees. Option (1) says “including”, so it is the statement that is not a feature. The employees walked from outside the bracket to inside it, and the answer changed with them. Read the small words in brackets too.

• Option (2) A private company must have at least 2 persons, except in case of one person company; — A feature of a private company. Two persons is the minimum, with the one person company as the only exception.

• Option (3) Limits the number of its members to 200 (excluding its employees); — A feature of a private company. The limit of 200 leaves out employees who are members.

• Option (4) Restricts the right to transfer its shares; — A feature of a private company. Its shares are not freely transferable, unlike those of a public company.