| Sl. No. | Section | Exemption/relaxation to a private company which is not a subsidiary of a public company | |
| 1. | 12(1) | Two subscribers are enough for formation | |
| 2. | 70(3) | A private company is exempted from filing statement in lieu of prospectus before issue of shares | |
| 3. | 77(2) | Private company not prohibited from giving assistance to any person to purchase its shares. | |
| 4. | 81(3)(a) | The provision of issue of further shares does not apply to a private company. | |
| 5. | 90 | The provisions of section 85 to 89 regarding kinds of capital, voting rights, etc. are not applicable to a private company. | |
| 6. | 108 | Shares in a private company are not truly transferable and are subject to restrictions which shall be indicated in the Articles. | |
| 7. | 111 | Provisions of the section will apply only to a private company. | |
| 8. | 149(7) | A private company need not comply with the formalities prescribed and need not obtain commencement certificate for commencing business after incorporation. | |
| 9. | 165 | Private company is exempted from holding statutory meeting. | |
| 10. | 170 | Sections 171 to 186 regarding notice of general meeting, quorum, contents of notice, explanatory statement, voting system, etc. as applicable to public companies will not apply to private companies. But the said provisions will apply to a private company if the Articles of the private company do not provide otherwise. | |
| 11. | 198 | The total managerial remuneration of 11% of the net profits not applicable to a private company. | |
| 12. | 204(6) | Restriction on appointment of a firm or body corporate to an office of profit not applicable. | |
| 13. | Second proviso under 220(1)(a) | In the case of a private company, no person other than a member shall be entitled to inspect at the Registrar’s office the profit and loss account of that company under section 610. | |
| 14. | 252 | A private company need have only two directors. But it may have more if desired. | |
| 15. | 255,256 | The provision of at least two-third of the directors subject to retirement and certain directors to retire at every AGM does not apply to a private company, but such a company shall have some other provision in its Articles. | |
| 16. | 257 | No member in a private company has a right to nominate a person by notice for directorship. | |
| 17. | 259 | Increase in the number of directors need not require the approval of the Central Government. | |
| 18. | 262 | The Articles of a private company can contain a suitable provision for filling casual vacancy among directors. | |
| 19. | 263 | Appointment of director to be voted individually not applicable. | |
| 20. | 264 | Consent of a person in Form 29 to act as director need not be filed with the registrar. | |
| 21. | 268 | Amendment of a provision relating to Managing or Whole-time Director or Non-rotational Director whether in Memorandum or Articles or otherwise does not require approval of the Central Government. | |
| 22. | 269 | Compulsory appointment of a Managing/Whole-time Director or Manager and approval of government in certain cases not applicable. | |
| 23. | 270 to 273 | Fixing share qualification and time within which share qualification, if any, has to be obtained does not apply to a private company. | |
| 24. | 275 to 279 | The restrictive provisions as regards the total number of directorships which any person may hold do not include any directorship held in private companies which are not subsidiaries | |
| | 283 | A private company may provide special grounds for vacating the office of director. | |
| 26. | 293 | The board in a private company can decide the matters specified in the section without taking the approval of the shareholders. | |
| 27. | 295 | No approval of Central Government is needed for a private company to give loans to its Directors. | |
| 28. | 300 | The provision of prohibiting an interested director from participating or voting in Board proceedings relating to his concern or interest in any contract arrangement does not apply to a private company. | |
| 29. | 303(1) | Date of birth of a director need not be given in the registrar of directors. | |
| 30. | 309,310, 311 | The provision regarding remuneration to Managing/Whole-time Directors and to non-executive Directors not applicable to a private company. | |
| 31. | 316, 317 | The restriction as to the number of companies of which a person may be appointed as Managing Director and prohibition of such appointment for more than five years at a time, do not apply to private company. | |
| 32. | 349,350 | These sections are not applicable to a private company (Section 355) | |
| 33. | 372A | The restrictions of giving loans or security or guarantee or making investment in shares of other companies not applicable to a private company. | |
| 34. | 386 to 388 | The provisions regarding Manager not applicable to a private company. | |
| 35. | 409 | The power of the Central government to appoint Directors on the Board or to prevent change in the Board does not apply to a private company. | |
| 36. | 416 | Contracts by agents in which company is undisclosed principal not applicable to a private company. | |
Regrads
PL.Manickam
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