Question

The term private company is defined in section ________ of the New Companies Act, $2013$.

• A. $2\left(68\right)$
• B. $3\left(1\right)\left(iii\right)$
• C. $3\left(2\right)$
• D. $4$

Answer 1

The correct option is A $2\left(68\right)$

As per Section 2(68) of the companies Act 2013, a Private company is a company which has a minimum 2 directors and minimum paid up share capital of rupees 1 lakh or any higher amount as may be prescribed and which through its articles -

1) Restricts the right to transfer shares

2) Limits the number of members to 200 (except in case of one person company).