CAF-4 · Chapter 16 · Question 1 of 10
According to the Companies Act, 2017, what is a key restriction placed on a 'private company' by its articles of association?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It restricts the right to transfer its shares.
Explanation
A private company is defined as a company which, by its articles, restricts the right to transfer its shares and limits the number of its members to fifty (not including persons in the employment of the company).
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