There are various basis to classify companies.
On the basis of the number of the members, companies can be divided in two:
· A Private Company
· A Public Company
Public Company means a company which not a private company.
Private Company means a company which by its articles of association: -
a. Restricts the right of members to transfer its shares
b. Limits the number of its members to fifty. In determining this number of 50, employee-members
and ex-employee members are not to be considered.
c . Prohibits an invitation to the public to subscribe to any shares in or the debentures of the company.
If a private company contravenes any of the aforesaid three provisions, it ceases to be private company and loses all the exemptions and privileges, which a private company is entitled.
On the basis of the number of the members, companies can be divided in two:
· A Private Company
· A Public Company
Public Company means a company which not a private company.
Private Company means a company which by its articles of association: -
a. Restricts the right of members to transfer its shares
b. Limits the number of its members to fifty. In determining this number of 50, employee-members
and ex-employee members are not to be considered.
c . Prohibits an invitation to the public to subscribe to any shares in or the debentures of the company.
If a private company contravenes any of the aforesaid three provisions, it ceases to be private company and loses all the exemptions and privileges, which a private company is entitled.
What are the various types of company
![What are the various types of company]()
Reviewed by Hosne
on
6:11 PM
Rating:
