Explain three characteristics of a private limited company

      

Explain three characteristics of a private limited company.

  

Answers


Raphael
Under the provisions of the Companies Act, a private company is any company whose articles of association:
- Limit the number of members to 50 excluding current and former employees who are members.
- Restrict the right to transfer its shares.
- Prohibit any invitation to the public to subscribe for its shares or debentures.

Other Characteristics include:
- Has at least one director.
- Entitled to commence business from the date of incorporation.
- Not obliged to hold the statutory meeting.
- Not obliged to publish accounts.
raphael answered the question on April 17, 2018 at 18:02


Next: Differentiate between a Memorandum of Association and Articles of Association of a registered company and detail the contents of the Articles of Association.
Previous: “A corporation may be defined as a legal entity or artificial person.” Explain what is meant by this statement.

View More CPA Commercial Law Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions