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    Question

    Which of the following is not a characteristic of a

    private limited company under Companies Act, 2013?
    A It has minimum 2 members Correct Answer Incorrect Answer
    B It can have a maximum of 200 members Correct Answer Incorrect Answer
    C Its minimum authorised capital should be Rs. 1 lakh while registration Correct Answer Incorrect Answer
    D Its shares are freely transferable Correct Answer Incorrect Answer
    E All are true Correct Answer Incorrect Answer

    Solution

    As per Companies Act, 2013 a private company is one that: • Restricts the right to transfer shares freely • has minimum 2 members • can have a maximum of 200 members • has minimum 2 directors • uses words “Private limited” in its name To register under the Act, such a company should state a minimum authorised capital of Rs. 1 lakh (note – minimum paid up capital requirement was removed).

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