GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Limits the number of its members to 50.
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Restricts the right to transfer its shares, if any
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Prohibits invitation to the public to subscribe for any shares in or debentures of, the company.
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All of the above
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Detailed explanation-1: -(iii) “ private company” means a company which, by its arti-cles, -(a) restricts the right to transfer its shares, if any; (b) limits the number of its members to fifty not including-(i) persons who are in the employment of the company, and.
Detailed explanation-2: -2. Number of members – In a private company the minimum number is 2 and the maximum is 50. In a public company the minimum number is 7 and there is no maximum limit set by Law.
Detailed explanation-3: -According to Section 2(2) of the Companies Act, 1956 ‘articles’ means the articles of association of a company as originally framed or as altered from time to time in pursuance of any previous companies laws or of the present Act, i.e. the Act of 1956. The Articles regulate the internal management of the company.
Detailed explanation-4: -The Companies Act, 1956 broadly classifies the companies into private and public companies and provides for regulatory environment on the basis of such classification.