Borrowing of Private Companies under the Companies Act, 2013
Private Company
In 2013 the Indian Parliament partly substituted the 1956 Company’s Act for the Companies Act of 2013, with the goal of bringing improvements to the country's present economic needs and compliance with international corporate practices. However, it should be noted that there are still few provisions in force from the 1956 Act. The Act governs all registered companies and focuses largely on corporate governance.
The Act creates a limited corporation with 2-200 employees and a minimum of 2 directors, owned by private individuals. After receiving a certificate of incorporation, it may begin business. Under Article 68(2), the private company shall not issue publicly shares and its shareholders shall be limited to shares being exchanged and there is no provision regarding...