Private Company [Section 2(68) of Companies Act, 2013]
Important Points On Private Company
- A private company may issue debentures to any number of persons, the only condition being that an invitation to the public to subscribe for debentures is prohibited.
- The restrictions, limitations and prohibitions given in defination of priavte company, which must be expressly provided in the articles of association (AOA) of a private limited company.
- It is mandatory for all the private companies to use the word “private limited” after its name.
- As per section 3(1), a private company may be formed for any lawful purpose by two or more persons.
- As per Section 149(1), a private company shall have a minimum number of two directors.