Explain three characteristics of a private limited company

  • Under the provisions of the Companies Act, a private company is any company whose articles of association:
    • Limit the number of members to 50 excluding current and former employeeswho are members.
    • Restrict the right to transfer its
    • Prohibit any invitation to the public to subscribe for its shares or


Other Characteristics include:

  • Has at least one
  • Entitled to commence business from the date of
  • Not obliged to hold the statutory
  • Not obliged to publish accounts.

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