Your client Vivek wants to form a private company with a share capital of ₹50,000. Examining the relevant provisions of the Companies Act, 2013, advise Vivek on the following issues with proper justification: Whether pub
CS Professional · Advanced Company Law and Practice · PYQS · December 2015
Your client Vivek wants to form a private company with a share capital of ₹50,000. Examining the relevant provisions of the Companies Act, 2013, advise Vivek on the following issues with proper justification: Whether public can be invited for subscribing to the share capital of the proposed company?
Answer & Explanation:
In view of Section 2(68) defining the term 'private company' which prohibits any invitation to the public to subscribe for any securities of the company, the proposed company cannot invite for subscribing share capital.
Topics: Company Incorporation & Types
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