The term Private company is defined under section 3(1) (iii) as:
A private company is one which has a minimum paid up capital of ONE LAC RUPEES or such higher paid up capital as may prescribed and by its Articles of Association.
WHAT IS THE LIMIT OF MEMBERS?
The MAXIMUM number of members should be 50 excluding the employee which are being members.
IS THERE ANY RESTRICTION ON TRANSFER OF SHARES?
The Articles of Association of a company could restrict the transfer of its shares. Example: a member can transfer his shares to another member and not in the open market.
POINTS TO REMEMBER:
A private company is one which has a minimum paid up capital of ONE LAC RUPEES or such higher paid up capital as may prescribed and by its Articles of Association.
WHAT IS THE LIMIT OF MEMBERS?
The MAXIMUM number of members should be 50 excluding the employee which are being members.
IS THERE ANY RESTRICTION ON TRANSFER OF SHARES?
The Articles of Association of a company could restrict the transfer of its shares. Example: a member can transfer his shares to another member and not in the open market.
POINTS TO REMEMBER:
- It prohibits invitation to public for subscription to shares in or debentures of the company.
- It also prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
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