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Under Section 2(68) of the Companies Act, 2013, a "private company" is a company having a minimum paid-up share capital as may be prescribed, and which by its articles:
Answer & Solution
Correct answer: A.
1. Section 2(68) sets out the three articles-based restrictions defining a private company.
2. The Lesson 1 reproduction lists: (i) restricts transfer of its shares; (ii) limits members to 200 (except in OPC); (iii) prohibits public invitation to subscribe for securities.
3. Joint shareholders of one or more shares are treated as a single member.
4. Past employees who held membership during employment and continued thereafter are NOT counted in the 200 cap.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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