23 March 2009
Private Company means a company which by its articles –
(i) restricts the right to transfer its shares;
(ii) limits the number of its members to fifty not including
(A) persons who are in the employment of the company; and
(B) persons who, have been formerly in the employment of the company, were members of company while in that employment and have continued to be members after the employment ceased.
(iii) Prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company;
(iv) Prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
Issue of shares to public is not possible.Transfer to relative is not possible
CAclubindia
