What are the Privileges of a private company?
A private company also is bestowed with certain privileges such as:-
1) A private company may have only 2 members.
2) It can allot shares before the minimum subscription for (or) paid.
3) Prospectus (or) a statement in lieu of prospectus is not required to allot shares (or) to issue a prospectus to the public.
4) It need not have more than 2 directors.
5) Holding of statutory meeting (or) filling of statutory report is not required.
6) A private company may start its business immediately on its incorporation.
7) It may issue any kind of shares and allow disproportionate voting rights.
8) The directors can vote on a contract in which they are interested.
9) The rules regarding directors are less stringent.
10) Directors need not retire by rotation.
11) The special notice of 14 days, for the appointment of a new director is not required.
12) The restrictions placed on a public company vide section 293, of the Act; do not apply to the public company.
13) A limit of managerial remuneration does not apply