{"id":6045,"date":"2022-10-11T08:32:06","date_gmt":"2022-10-11T08:32:06","guid":{"rendered":"https:\/\/commerceiets.com\/?p=6045"},"modified":"2022-10-11T08:32:06","modified_gmt":"2022-10-11T08:32:06","slug":"special-privileges-of-private-company-under-company-law","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/special-privileges-of-private-company-under-company-law\/","title":{"rendered":"Special privileges of private company under company law"},"content":{"rendered":"\n
PRIVATE COMPANY: <\/strong>A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).<\/p>\n\n\n\n Section 2(68) of the Companies (Amendment) Act, 2015 defines a Private Company as a company which has a minimum paid up capital as may be prescribed, and by its articles:<\/p>\n\n\n\n (i) restricts the rights of its members to transfer of share, (if it has any);<\/p>\n\n\n\n (ii) except in case of one person company, limit the number of its members to two hundred (200), which does not include.<\/p>\n\n\n\n Where two or more persons hold one or more shares in a company jointly. They for the purposes of this clause be treated as a single member.<\/p>\n\n\n\n (iii) prohibits any invitation to the public to subscribe for any securities of the company.<\/p>\n\n\n\n The provisions of the Companies Act are equally applicable to private and public companies; but in some cases, the Act provides some privileges and exemptions to private companies. These privileges and exemptions available to a private company are in fact nothing but its advantages over a public company. They are as follows:<\/p>\n\n\n\n PRIVILEGES REGARDING FORMATION OR INCORPORATION: <\/strong>These are as under:<\/p>\n\n\n\n PRIVILEGES REGARDING ISSUE OF SHARES:<\/strong><\/p>\n\n\n\n PRIVILEGES REGARDING MEETINGS:<\/strong><\/p>\n\n\n\n PRIVILEGES REGARDING DIRECTORS:<\/strong><\/p>\n\n\n\n OTHER PRIVILEGES:<\/strong><\/p>\n\n\n\n CONCLUSION<\/strong><\/p>\n\n\n\n Although the private companies enjoy the special privileges over and above public companies. But if any private company violates the section 2 (68) of companies act 2013 which is relating to the articles of association, the company may lose its privileges.<\/p>\n\n\n\nFEATURES OF PRIVATE COMPANY<\/h2>\n\n\n\n
SPECIAL PRIVILEGES OF PRIVATE COMPANIES UNDER COMPANIES ACT 2013<\/h2>\n\n\n\n