(a) restricts the rights
to transfer its shares, if any;
(b) limits the number
of its members to fifty not including-
(i) persons who are
in the employment of the company, and
(ii) persons who, having
been formerly in the employment of the company, were members of
the company while in that employment and have continued to be members
after the employment ceased; and
(c) prohibits any invitation
to the public to subscribe for any shares in, or debentures of,
the company ;
(d) prohibits any invitation
or acceptance of deposits from persons other than its member, directors
or their relatives;
Provided that where
two or more persons hold one or more shares in a company jointly,
they shall, for the purposes of this definitions, be treated as
a single member;
Public company means
a company which -
(a) is not a private
company;
(b) has a minimum paid-up
capital of five lakh rupees or such higher paid-up capital, as may
be prescribed;
(c) is a private company
which is a subsidiary of a company which is not a private company.
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Every
private company, existing on the commencement of the Companies
(Amendment) Act, 2000, with a paid-up capital of less than one
lakh rupees, shall, within a period of two years from such commencement,
enhance its paid-capital to one lakh rupees.
-
Every
private company, existing on the commencement of the Companies
(Amendment) Act, 2000, with a paid-up capital of less than five
lakh rupees, shall, within a period of two years from such commencement,
enhance its paid-capital to five lakh rupees.
-
Where
a private company or a public company fails to enhance its paid-up
capital in the manner specified in sub-section (3) or sub-section
(4), such company shall be deemed to be a defunct company within
the meaning of section 560 and its name shall be struck off
from the register by the Registrar.
-
A
company registered under section 25 before or after the commencement
of Companies (Amendment) Act, 2000 shall not be required to
have minimum paid-up capital specified in this section.
