private company

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A residuary type of registered company defined by section 4(1) of the Companies Act 2006 as any company that is not a public company. This form of company is prohibited from offering its shares to the public at large (Companies Act s 755). Although not a strict requirement under the Act, it is common to find such companies placing restrictions on the transfer of shares and confining them to other (often family) members. As with a public company, a private company can consist of only one company member. Many of the restrictions that apply to public companies (such as those relating to the issuing of shares, the holding of meetings, and financial assistance) are relaxed under the Companies Act 2006 in respect of private companies.

Subjects: Law.

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