Question

Shares of _________ company are freely transferable.

• A. Private Company
• B. Public Company
• C. Both (a) & (b)
• D. None of the above

Answer 1

The correct option is B Public Company

Private company'is a company, which restricts the right to transfer its shares. In the case of a public company, the Act provides that the shares or debentures and any interest of the company are freely transferable.

Free transferability of shares in public. restricts the right to transfer its shares, if any; While public company is a company which is not a private company and moreover, the shares of a public company are freely transferable.