at 12:00 AM

Section3(1)(iii)- Private Company;The Companies Act,1956

Private Companies are subject to following restrictions under the above mentioned Section :

  1. Right to transfer shares is restricted
  2. Number of members limited to 50 :
    • Joint holders to be counted as one member for the purpose of  deciding the number of members
    • Employees; whether retired or not who have shares due to being in employment, won’t be counted as members for the purpose of this definition
  3. Prohibition on invitation to public to subscribe for any shares or debentures
  4. Prohibition on acceptance and invitation of deposits from persons other than its members, directors or their relatives

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