P. EXEMPTIONS AND PRIVLEGES AVAILABLE TO AN INDEPENDENT PRIVATE COMPANY
In .addition to the above exemptions and privileges, 'an independent l private company', mat b e a subsidiary of a 'pub tic company 'or q 'deemed to he public company J enjoys the follow as well (The reason for ruahing,tl lese additional privileges available to an irrdependerrtc private company is that it does not employ public money mad is usually run as a family concern).
60 ’s: SECRETARIAL Practice
3. The provision prohibiting the purchasing of shares and dyer of other con.yaniesiul the same group, does not applytosuchapi
Sec. 372). :
4. It can keep its affairs secret. Although it has been made obhga lor upon every private company to file three copies of Balance Sheet and three copies of Profit and Loss Account with the Registrar, within 30 days of the Annual General Meeting, copy of Profit and Loss Acco imt shall not be open for inspection to a nonmember it is worth nothing here that in the case of a 'deemed to be public conip my' the Central Goverr lment is empowered to direct, in the public interest that a nommember shall not have access to the Profit and Loss Accomit (Sec. 220).
5 It can issue deferred shares with disproportionatevohng rights [See 9012)]. :
6. The provisions of Sections 171 to meetings, manner of ta!iing vote, etc. must be followed by a public company, but an independent private company can make its own regulations by its articles (Sec. 170).
It is to be remembered, however, that the above exemptions and privileges are available to a private. company so long as it maintains its independent charter When it become a subsidiary to a public company or a 'deemed to bgpublic company', it wilt be treated atparwith a public company.
DISTINCTION BETWEEN A PRIVATE AND PUBLIC COMPANY
Q. 5. Distinguish between Private and Public Company
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