Privileges and exemptions enjoyed by a private companies

 

Privileges and exemptions enjoyed by a private companies

 

(1) Under the section (12) two or more members (but not exceeding) may from a private company privileges.

(2) Allotment of shares without announcing a prospectus or delivering to the registrar. An explanation in lieu of prospectus is permissible under the section (70).

(3)Under the section(77) it can advance loans for the investment of its own shares.

(4) Under the section (18) of further issue of shares need not be offered to the existing share holders in a company privileges.

(5) A private limited company may issue not only equity, shares and preference. But also deferred shares of any other kind of shares. It may issue shares with disproportionate voting rights.The restrictions relating to the nature of shares and the voting rights.The restrictions relating to the nature of shares and the voting rights is attached to them applicable to public companies do not apply to a private company section (85 )to (90).

(6) Private company can refuse to register a transfer or communication of its shares without any right to appeal to the applicant under the section (111).

(7) The restrictions on the commencement of business contained is a section (149). Which have been made applicable to all companies. It does not govern private company privileges.

(8) The Private limited company commitment is not hold a file or statutory meeting. A legal report with the registrar after its registration in section (165).

(9) A private company can make its own rules in the objects. In relation to their general meeting. Ex : shorter period than 21 days for calling annual meeting, manner of service of notice. The selection of proxies, chairman, manner of taking votes, controls on the exercise of votes, demand of polls and taking of polls.

(10) Ceiling of maximum remuneration to managerial personal not apply to a private company.

(11) Private company can appoint a body corporate also to any office or place of profit for 5 years or more.

(12) The profit and loss account of private limited company filed with the registrar cannot be inspected by the public.

(13) A private company may have only two directors in a company.

(14) The restrictions concerning appointment and re-appointment of guidance. The arrangements relating to retirement of directors by rotation do not employ to a private limited company.

(15) There is no need for special notice of a person seeking election to the point of a director.

(16) There is no need for seeking sanction of the places in Chennai. Before expanding the number of directors beyond. The number mentioned in the objects.

(17) The provisions relating to the mode of appointment to casual vacancies in the board. The duration of such appointment. The provisions requiring each director should be appointed by a special resolution. The requirement of filing the consent of each director. The registrar do not employ to a private company.

(18) The government approval is not required either for appointment of. An reappointment of a managing director. The whole time director of the company.

(19) A director of private company need not hold the share qualification. The company acquire them within two months. It may file a declaration of share qualification with the registrar.

(20) It may be their articles of registration. The company provide a main disqualifications for appointment of directors.

(21) A private company can provide that the office of a director shall be vacated on any ground. In addition to those are specified in the section (283).

(22) No restrictions are imposed. The selling of whole or part of the undertaking on the powers of board of directors.

(23) No restrictions on loans to directors employ to such a company in section (295).

(24) An interested director may participate in the board’s proceedings and exercise his vote.

(25) The restriction of maximum remuneration to the directors. The provisions of increase in remuneration of directors, managing directors without government . Permission do not employ to a private limited company.

(26) No restrictions on the number of companies managed by a director. In case of public limited company has twenty. A managing director two companies in case of public companies. A manger two companies in case of public companies apply to such a company.

(27) Again, the restrictions on period of appointment of a managing director and manager five years. In case of public limited company does not employ to an independent private limited company.

(28) Inter-investment of funds for making loans to other companies. Under the same management is permitted for a company registration.

(29) The provision prohibiting the purchasing of shares and debentures of other companies in the same group. It does not employ to such a private limited company.

(30) The government cannot prevent a change in the board of directors of a private limited company. Which is likely to affect management prejudicially.

(31) The contracts entered into by an agent of private limited company. Which is not the auxiliary of a public company. If an agent is entered for the company as hidden primary. They need not be registered their company in Chennai or by a directive in writing under the section (416).