English, asked by shresthashiva7957, 16 days ago

Define a private company. State its privileges and exemptions.

Answers

Answered by HamzaNasrullah
1

Answer:

A PRIVATE COMPANY IS THAT WHOSE SHARES ARE NOT OFFERED TO PUBLIC FOR SALE

Explanation:

 MEMBERS:

private company can be started by two persons only, whereas seven persons are required to start a public company

COMMENCEMENT OF BUSINESS:

. private company can commence business immediately after its incorporation. It is not required to obtain the certificate of commencement of Business.

PROSPECTUS:

A private company is not required to issue or file a prospectus or statement in lieu of prospectus with the Registrar of Companies.

STATUATRY MEETINGS :

private company is not required to hold a statutory meeting or to file statutory report with

DIRECTORS:

A private company can have only two directors. It is exempted from restric­tions relating to the appointment, reappointment, retirement, and remuneration etc., of managerial personnel.

Answered by ranamayank428
0

Answer:

A private company can appoint a body corporate or a firm to an office or the place of profit under the company. It need not have more than two directors. Statutory notice will not be required to a person who stands for election as a director.

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