A private company is one which.

(A) restricts the right to transfer share..

(B) limits the number of members to 200.

(C) must have at least 2 persons.

(D) inculde a company which is subsidiary of public company.

Choose the correct answer from the options given below:

A private company under the Companies Act, 2013 has specific characteristics that distinguish it from a public company.

Analyzing each statement:

(A) Restricts the right to transfer shares - This is correct. A private company must include restrictions on the transfer of shares in its Articles of Association. Shares cannot be freely transferred without consent of other members.

(B) Limits the number of members to 200 - This is correct. The maximum number of members in a private company is restricted to 200 (excluding present and past employee members).

(C) Must have at least 2 persons - This is correct. The minimum requirement for forming a private company is 2 members (maximum being 200).

(D) Include a company which is subsidiary of public company - This is incorrect. As per Section 2(68) of the Companies Act, 2013, a private company that is a subsidiary of a public company does not qualify as a private company. It loses its private company status and is treated as a deemed public company.

Therefore, the characteristics that define a private company are (A), (B), and (C) only.

Correct Answer: Option 2