Question

Which section of Companies Act defines the term private company?

• A. section 2(42)
• B. section 2(72)
• C. section 2(68)
• D. section 2(48)

Answer 1

Answer: (C)

section 2(68)

As per section 2(68) of the Companies Act, 2013 private company means a company having a minimum paid-up share capital as may be prescribed, and which by its articles,—

(i) restricts the right to transfer its shares;

(ii) except in case of One Person Company, limits the number of its members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member