Previlages of pvt co.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2011 dear sir/madam

i want to knw the privileges of private co. upon the conversion of limited (unlisted) co. into pvt co.

or removal of restrictions on limited (unlisted co) as compared to pvt co.

pls pls solve, its urgent or provide me with sections which deal with above problem

thanks

regards

miss tanveer ahuja

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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28 December 2011 Nature of Exemptions/Privileges to Private Companies
77(2)-It can give financial assistance for the purchase of or subscribing to its own or its holding company’s shares.
90(2)-Provision of section 85 to 89 regarding kinds of share capital, voting right, etc., are not applicable to a private company.
198(1)-Any percentage of the net profit may be paid as managerial remuneration by a private company as provisions restricting the payment of overall managerial remuneration to 11% of the net profits are not applicable to a private company.
204(6)-A firm or a body corporate may be appointed to an office or place of profit in the company.
220(1) (a) -Only members of the private company can inspect or obtain copies of the profit and loss account of that company under section 610.
255(1), 256 -Provisions relating to appointment of directors and proportion of those who are to retire by rotation do not apply to a private company.
257(2)-Provision relating to right of persons other then retiring directors to stand for directorship is not applicable to private company.
259- Increase in number of directors beyond the 12 does not require the approval of the Central Government.
262-Procedure for Filing of casual vacancy of the directors in the board meeting is not applicable to a private company.
263(1)-Two or more persons can be appointed as directors of the private company by a single resolution.
264(3)-Consent to act as director in E-form32 is not required to be filed with the Registrar of Companies.
268-Central Governments’ approval is not required for amendment of any provision relating to managing, whole time or non-rotational director.
269(2)-Approval of Central Government is not required for appointment of managing or whole-time director or manager.(in certain cases)
273 read with section 270 - A director of a private company is not required to hold qualification shares within the prescribed time limit in terms of section 270.
274-Additional disqualification for directors can be provided articles of private company.
278-In calculating the maximum limit of fifteen directorships the directorships in private companies are to be excluded.
283-A private company may in its articles provide for additional grounds for vacation of office by a director.
293(1) (a) to (e) -Matters specified in this section can be decided by the board of directors without taking approval of shareholders.
295(2)-Approval of Central Government is not required for giving loans guarantee or security to directors of a private company.
300(2)-Prohibition against participation or voting by an interested director in Board’s proceeding relating to a resolution in which they are interested does not apply to a private company.
303(1) (a)-Date of birth of directors, managing director, manager and secretary need not be entered in the register of directors.
309(9), 310, 311 --The provisions relating to remuneration of managing directors/whole time directors and non executive directors are not applicable to a private company.
316(1)-A person who is appointed as a managing director in any number of private companies can be appointed as managing director of a private company.
317(4)-Managing director may be appointed for a period of more then five years.
355 read with sections 349&350 -- Provisions relating to determination of net profits and ascertainment of the depreciation shall not apply to a private company.
372A-Provisions relating to giving of loan or guarantee or security or making investment under this section shall not apply to a private company.
388A read with sections 386 to 388 ---- Provisions of sections 386 to 388 relating to appointment, and remuneration, etc., of manager are not applicable to a private company.
409(3)-Power of the Central Government to prevent change in the board of directors which is likely to affect the company prejudicially does not apply to a private company.
416(3)-Person can enter into contract on behalf of private company as undisclosed principal without giving intimation to other directors.

Message likes : 2 times

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2011 thanks alot Mr. mitesh......

i same way can i have disadvantages of being a pvt co.????
actualy my co. wants to change its status according to the privileges and disadvantages related to pvt co.?????
so pls if u have disadvantages too pls provide????

thanks

regards

miss tanveer ahuja

li