clarify

CS 585 views 2 replies

 

"it must be noted that it is only the number of members (in a private company) that is limited to 50. a pvt co may isue debentures to any number of persons, the only condition being that an invitation to the public to subsribe for debentures is prohibited"
page 47 of company law cs exe study material

friends pls tell me wat it means. i am confused.
Replies (2)

members here means shareholders

max limit

pvt co. 50

public co. no limit

and

debenture is a seperate issue

you can issue debenture to any person via public issue in public co. but not in the case of pvt. co. it is not allowed, it has to be placed privately. i.e. not via public issue other than that

thanks friend!!


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