Justify the following statement :Shares of Private Limited company are

1.	Justify the following statement :Shares of Private Limited company are not freely transferable.
Answer» 1. According to the Companies Act, the right to transfer shares is restricted by its articles. 2. Only a public limited company has right to transfer shares freely. 3. Thus, shares of Private Limited company are not freely transferable.

Justify the following statement :Shares of Private Limited company are not freely transferable.

Answer»

1. According to the Companies Act, the right to transfer shares is restricted by its articles.

2. Only a public limited company has right to transfer shares freely.

3. Thus, shares of Private Limited company are not freely transferable.