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Justify the following statement. Shares of Private Limited Company are not freely transferable.

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Question

Justify the following statement.

Shares of Private Limited Company are not freely transferable.

Short/Brief Note
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Solution

  1. According to the Companies Act, the right to transfer shares is restricted by its articles.
  2. Only a public limited company has the right to transfer shares freely.
  3. Thus, shares of Private Limited company are not freely transferable.
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Chapter 4: Forms of Business Organisation - I - EXERCISE [Page 94]

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Balbharati Organisation of Commerce and Management [English] Standard 11 Maharashtra State Board
Chapter 4 Forms of Business Organisation - I
EXERCISE | Q 6. 9) | Page 94
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