membership

A private limited company is a business entity that is held by private owners. This type of entity limits the owner's liability to their ownership stake, and restricts shareholders from publicly trading shares. ..

A private limited company is a business entity that is held by private owners. This type of entity limits the owner's liability to their ownership stake, and restricts shareholders from publicly trading shares. ..

Yes public company can become the member of private company if such private company offer such company to subscribe shares and after acquiring more than 51% of equity shares such private company is deemed to a Public company.

ok but public company is prohobited to any invitantion to the public to subscribe for any securities so how can public company subscribe share of private company..?

Can you please share me the section or provision or rules where it is prohibited so I can answer you

as pr sec 2(68) of companies act 2013 by its article must prohibits any invitation the public to subscribe for any securities..

Yes 2(68) (iii) prohibits any invitation to the PUBLIC to subscribe for any securities of the company. It's no where expressly mentioned that to public and Public company.

So such private company should not issue shares in public at large.

But in some cases one or more public company incorporate a private company for some special objective the only condition is company should not issue any security to public but if such shares are acquired by more than 50% by Public then such private company ceases to be a private as per section 14(1)

yeah as per sec 14 (1) if a private company alters its article where its prohibited, then such company shall cease to be private company in such case it shall treated as public company from the date of alteration of its article..

So you mean to say Public company cannot become the Member of private company.

X limited and Y Limited decides to incorporate a private company and the both are holding 50% of shares in that private company and not issuing any securities to Public. Is it a private company or Public company ?? In your opinion please comment

as per sec.2(68) provisions of companied act 2013 a private comapy means a company which has a minimum paid up capital as may be prscribed and by its articl.
(a)arestrict the right to yransfer its share.
(b)limit the number of member not exceed 200.
(c) prohibed any invitation to the public for subscribe any securities.
private company must have atleast 2 member to incorporate private company rather public company must incorporats with atleast 7 member.

in the above case only 2 members are incorporated a private company that are ptohibits to invitation of public issue and not issuing securities to public therefor
it will treated as private company...

Act say that private company is prohibited to issue Securities to Public. It's no where mentioned that Public company cannot become a member of Private company.

Answer to your questions : Yes Public company can become the member of the private company if such private company (Privately offer shares) to the public company and not in public..

Your opinion is correct..I hope your query get resolved..
Thank You

ysss thnkz to uh too...😊