State the important privileges available to a private company

Answer: Important privileges available to a private company are as follows : • Private company need not issue of prospectus or file a statement in lieu of prospectus before raising capital and allotting the shares to its member. • Restriction regarding for the issue of capital do not apply on private companies. • Restrictions on starting of a business does not apply on private companies. • Holding a statutory meeting and submission of statutory report is not necessary for a private company. • Provisions relating to general meetings ,if articles of company otherwise provide , do not apply to private companies. • Ceiling on maximum managerial remuneration is not applicable to private companies. • HOPE THIS ANSWER WILL HELP YOU…. Here are some more questions from this chapter : Compare the status of a minor in a Joint Hindu family business with that in a partnership firm. If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.

This study consists of the Class 11 Business Studies Chapter 2 NCERT solutions in a PDF format and students can download the PDF file for free from Vedantu. These NCERT Solutions for Business Studies Class 11 Chapter 2 will help students to learn the concepts covered in this chapter properly. By referring to these NCERT questions and solutions, students can prepare well and secure maximum marks in their examinations. Also, they can solve the exercise questions on their own and compare them with the NCERT Solutions to identify and rectify their mistakes. 1. The structure in which there is separation of ownership and management is called (a) Sole proprietorship (b) Partnership (c) Company (d) All business organisations Ans: (c) Company 2. The karta in Joint Hindu family business has (a) Limited liability (b) Unlimited liability (c) No liability for debts (d) Joint liability Ans: (b) Unlimited liability 3. In a cooperative society the principle followed is (a) One share one vote (b) One man one vote (c) No vote (d) Multiple votes Ans: (b) One man one vote 4. The board of directors of a joint stock company is elected by (a) General public (b) Government bodies (c) Shareholders (d) Employees Ans: (c) Shareholders 5. Profits do not have to be shared. This statement refers to (a) Partnership (b) Joint Hindu family business (c) Sole proprietorship (d) Company Ans: (c) Sole proprietorship 6. The capital of a company is divided into number of parts each one of which are called (a) D...

In this article we will discuss the definition of a Private Company which can also be used to describe the features or characteristics of Private Company. We will also discuss the Privileges and Exemptions that a Private Company enjoys in comparison to a Public Company. Define a private company. State its privileges and exemptions. Definition of Private Company According to the Companies (Amendment) Act (2000), a private company is the company which: • has a minimum of 2 and maximum of 50 members excluding the employees. • restricts the right of members to transfer their shares. • does not offer its shares to the general public. • does not invite general public to invest deposits in the company. • has minimum paid up capital of ₹ 1 lakh. A private company must use the words, ‘Private limited’ or ‘pvt Ltd.’ After its name. Tata Motors, Citi Bank are examples of private companies. Read also: Privileges and exemptions of a Private Company A private company enjoys some special privileges and exemptions which are as follows: • Minimum number of members: A private company needs only two members to form unlike public companies that require a minimum of seven members. • No Prospectus required: Shares of a private company may be allotted without issuing prospectus. • No Certificate for commencement of business: A private company can commence business immediately after obtaining Certificate of Incorporation without waiting for Certificate for Commencement of business. But a public c...

One of the privileges of a private limited company is given. Choose the option which is related to it: A. A private company can be formed by only two members. B. Need to issue a prospectus as public is invited to subscribe to shares C. It is mandatory to keep an index of members in private company. D. Allotment of shares cannot be done without receiving the minimum subscription. (1) A (2) B (3) C (4) D

SOLUTION The following are some of the privileges of a private limited company as compared to a public limited company. (i) The minimum number of members required to form a private company is only two while at least seven people are needed to form a public company. (ii) A private company does not need to issue a prospectus as public is not invited to subscribe to its shares. (iii) Allotment of shares can be done without receiving the minimum subscription. (iv) A private company can start a business as soon as it receives the certificate of incorporation and does not have to wait for the receipt of a certificate of commencement as in the case of a public company. (v) A private company needs to have only two directors as against the minimum of three directors in the case of a public company. (vi) A private company is not required to keep an index of members unlike a public company. (vii) There is no restriction on the amount of loans to directors in a private company while in case of a public company permission from the government is required.

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• • Menu Toggle • BCA 1st Sem • BCA 2nd Sem • BCA 3rd Sem • BCA 4th Sem • BCA 5th Sem • BCA 6th Sem • Menu Toggle • B.Com 1st Year Menu Toggle • Business Low • Business Communication • Business Economics • Business Enviornment • Financial Account • Business Statistics • B.com 2nd Year Menu Toggle • Corporate Law • Cost Accounting • Fundamental of Entrepreneurship • Public Finance • Income Tax • Principle of Management • Menu Toggle • B.com 1st year • B.com 2nd Year • Bcom 3rd Year • Menu Toggle • Mcom 1st Year • Mcom 2nd Year • Menu Toggle • B.com 1st Year • Bcom 2nd Year • Bcom 3rd Year • • Menu Toggle • BSC Syllabus • Bcom Syllabus • BCA Syllabus Private Company Corporate law notes :- Welcome to Sdak24.com. We are presented to you Corporate account notes in this article you can find all corporate law and company law way how to prepare your exam and you communication skills . this course is specially for bcom . please share this article to your best friend and other for helps to other person.. question : Define a ‘Private Company’. Describe the legal and concessions enjoyed by a private company. or Define a Private Company. What privileges and exemptions? or which such companies may enjoy under-the Companies Act ? or (ii) Except in case of one person company (OPC) limit the number of its members to 200, excluding members who are or were in the employment of the company. (iii) prohibits any invitation to the public to subscribe for any securities of the company. (iv) prohi...

The following are some of the privileges of a private limited company compared to a public limited company 1.The minimum number of members required to form a private company is only two while at least seven people are needed to form a public company. 2.A private company does not need to issue a prospectus as public is not Invited to subscribe to its shares. 3.Allotment of shares can be done without receiving the minimum subscription. 4.A private company can start business as soon as it receives the certificate of incorporation and does not have to wait for the receipt ofcertificate of commencement as in case of a public company. 5.A private company needs to have only two directors as against the minimum of three directors in the case of a public company. 6.A private company is not required to keep an index of members unlike a public company. 7.There is no restriction on the amount of-loans to directors in a private company while in case of a public company permission from the government is required.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. • Incorporation is the way that a business is formally organized and officially brought into existence. • The process of incorporation involves writing up a document known as the articles of incorporation and enumerating the firm's shareholders. • In a corporation, the assets and cash flows of the business entity are kept separate from those of the owners and investors, which is called limited liability. • Though incorporation, a company's tax liability is also treated differently that that of a sole proprietorship or partnership. • Incorporating makes it easier for a business to sells shares, raise capital, and divest ownership from a portion of the business. Another primary difference between legal entities and one of the most important reasons a company may want to incorporate is for the advantage of issuing stock. When a company incorporates, it gains the ability to share ownership of the company by issues s...

This study consists of the Class 11 Business Studies Chapter 2 NCERT solutions in a PDF format and students can download the PDF file for free from Vedantu. These NCERT Solutions for Business Studies Class 11 Chapter 2 will help students to learn the concepts covered in this chapter properly. By referring to these NCERT questions and solutions, students can prepare well and secure maximum marks in their examinations. Also, they can solve the exercise questions on their own and compare them with the NCERT Solutions to identify and rectify their mistakes. 1. The structure in which there is separation of ownership and management is called (a) Sole proprietorship (b) Partnership (c) Company (d) All business organisations Ans: (c) Company 2. The karta in Joint Hindu family business has (a) Limited liability (b) Unlimited liability (c) No liability for debts (d) Joint liability Ans: (b) Unlimited liability 3. In a cooperative society the principle followed is (a) One share one vote (b) One man one vote (c) No vote (d) Multiple votes Ans: (b) One man one vote 4. The board of directors of a joint stock company is elected by (a) General public (b) Government bodies (c) Shareholders (d) Employees Ans: (c) Shareholders 5. Profits do not have to be shared. This statement refers to (a) Partnership (b) Joint Hindu family business (c) Sole proprietorship (d) Company Ans: (c) Sole proprietorship 6. The capital of a company is divided into number of parts each one of which are called (a) D...