State the important privileges available to a private company .
Answers
Answered by
6
Explanation:
- Only two persons (minimum) are required to form a private company.
- Only two persons (minimum) are required to form a private company.Only two directors (minimum) are needed to run such a company.
- Only two persons (minimum) are required to form a private company.Only two directors (minimum) are needed to run such a company.It can be incorporated with a paid up share capital of one lakh only.
- Only two persons (minimum) are required to form a private company.Only two directors (minimum) are needed to run such a company.It can be incorporated with a paid up share capital of one lakh only.Private company is not required to issue a prospectus.
- Condition of minimum subscription does not apply to it.
- Only two members constitute the quorum for meeting of its
- Only two members constitute the quorum for meeting of itsAll directors can be permanent directors. They need not retire by It need not have independent directors on the Board.
- It need not have independent directors on the Board.A person can be a director in 20 companies.
- Rules regarding the overall or maximum limit for managerial remuneration do not apply to such companies.
- It need not constitute an audit committee of the Board.
Answered by
10
Explanation:
Important privileges available to a private company are as follows :
- Private company need not issue of prospectus or file a statement in lieu of prospectus before raising capital and allotting the shares to its member.
- Restriction regarding for the issue of capital do not apply on private companies.
- Restrictions on starting of a business does not apply on private companies.
- Holding a statutory meeting and submission of statutory report is not necessary for a private company.
- Provisions relating to general meetings ,if articles of company otherwise provide , do not apply to private companies.
- Ceiling on maximum managerial remuneration is not applicable to private companies.
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