Business Studies · Company Law
Which of the following statements is correct regarding a Private Company under the Companies Act?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A private company is prohibited from inviting the public to subscribe for any of its securities.✓
- 2A private company's shares are freely transferable to the general public without restrictions.
- 3A private company is permitted to issue its shares to the general public.
- 4A private company always must have a government nominee as a member.
Correct answer
A private company is prohibited from inviting the public to subscribe for any of its securities.
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