The AOA of private company requires to be mention three restrictive clause (i.e. members upto 200, prohibition on inviting the public to subscribe its securities & restriction on transibility of its shares to outsiders)
so my doubt is this if the private company is prohibited to invite public to subscribe its share and also restrict to transfer its shares to outsiders then 'How any private company can become a subsidiary of any public company'?
CAclubindia
