A private company is one which:(A) restricts the right to transfer shares.(B) limits the number of members to 200.(C) must have at least 2 persons.(D) include a company which is subsidiary of public company.Choose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (B) and (C) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
According to Section 2(68) of the Companies Act, 2013, a private company restricts share transfer (A), limits members to 200 (B), and requires a minimum of 2 directors/members to incorporate (C).However, a private company which is a subsidiary of a public company is legally treated and deemed as a public company under the Act. Hence, statement (D) is incorrect in defining a private company context.