Site navigation

Under the Companies Act, 2013, shares in which type of company are required to be freely transferable?…

Shares in a public company are freely transferable under section 58(2) of the Companies Act, 2013. A private company restricts the right to transfer its shares through its…

Choose your answer

Under the Companies Act, 2013, shares in which type of company are required to be freely transferable?
i) Public company
ii) Private company

Select one answer
Answer and explanation

Correct answer A

Shares in a public company are freely transferable under section 58(2) of the Companies Act, 2013. A private company restricts the right to transfer its shares through its articles, so the same statutory description does not apply to it.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic