The exemptions and privileges enjoyed by a private limited company
The private limited company exemptions and privileges also and its advantages over a public company as follows in the below articles.
Statement in part of lists are required ans it is not be delivered to the registrar before assigning shares.
Section 77 (2):
Financial helps can be given for purchase of or approving for its own shares or shares in its holding company. The private limited company registration may be placed on their ROC in their location.
Further shares can be provided without passing particular declaration or getting central governments confirmation and without providing the same needs to existing shareholders.
Stipulations as to types of share capital (Section 85), further issue of share capital (Section 86) and voting rights (Section 87).
Section 149 (7)
Business can be started quickly on registration without getting a certificate of start from the registrar.
It is not required to hold a legal meeting and to send legal report to register or file to shareholders or register the same with registrar.
Articles of private limited company may offer for rules which are relating to common meetings without being subject to the conditions of sections 171 to 186.
Any amount of managerial remittance can be paid and the same is not confined to any specific parts of the net profits.
Private Limited Company can appoint a body corporate or a firm to an office or top of profits on their company.
Private Limited Company need not have more than two directors.
A percent of directors is need not have more than two directors.
Section 257 (2)
The legal notice is not necessary for a person to ready for election as a director.
Central government’s approval is not necessary to make improve in the number of directors above 12 or the number specified in AOA.
In passing declaration for election of directors, all directors can be appointed by separate declaration.
Allow to act as director and it is not mandatory to filed with registrar.
Section 266 (5)
Rules on advertisement or appointment of directors as regards allow and eligibility of shares are does not apply.
Central governments approval is not mandatory to change any conditions which are relating to appointment of directors.
Section 269 (2)
Central governments approval is also not required for appointment of manager or whole-time director.
The private limited company directors are need not have any share qualification in terms of section 270.
Section 275 to 279
Repressive conditions regarding entire number of directorships that a person may hold do not contain directorships held in private limited company which are not auxiliary of public limited company.
Specific rules on powers of board of directors do not apply.
Section 295 (2)
The orders against loans to directors does not apply.
Section 300 (2)
The refusal against involution in board meetings by concerned directors does not apply.
The director DOB is not necessary to be entered in the register of directors.
There is no regulation on earnings payable to directors.
Any difference in pay of directors also does not need governments approval.
Any modify in the payments not being moving fees beyond particular limit of directors on reappointment or appointment does not need governments approval.
The companies may appoint one person as their managing director.
Section 317 (4)
Managing director is not appointed more than 5 years.
Special duties of a Private Limited Company
In addition to the rules applied on private limited companies as included in section 3(1).
A private limited company have particular requirements as compared to a public limited company that follows:
A private limited company while registering its annual return with the ROC as need by section 159. It must also send with this return a certificate mention that the company has not. The private limited company members exceed fifty, the extra contains of persons under clause b.
A private limited company member cannot appoint more than one agent to vote and attend company meeting.
Consequences of infringement of the articles of private limited company and their exemptions
Section 43 stand that if a private limited company applies a default in following with any of the mandatory conditions need to be included in its articles as need under section 3(1). It shall come outs as private limited company and the act will assign to the company as if it is not a private limited company.
So, if the offense of any of the four conditions included in the articles was due to accidental or other sufficient cause.
The matters which arise on account of infringing the minimum number of members in case of private limited company as under:
Several liability of members:
The members of a private limited company under section 45, they will lose their limited liability. In typical cases, their number falls below two and the company confines on business of more than six months.
Company Winding up:
This clause explains that the reduction of members below 2 in case of private limited company is a reasonable ground for mandatory winding up.
Section 439 (4) (a):
This clause represents that a subscriber may offer a petition for winding up of a private limited company if the number fails two.
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