Define a private company. State its privileges and exemptions.
Answers
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.
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.