Prospectus and allotment of securities (PAS)

Corporate & Other Laws

In private company max members can not exceed 200 persons, but as per sec 42, regarding private placement, COMPANY CAN MAKE UPTO 200(individual for each kind securities) PRIVATE PLACEMENTS IN A FINANCIAL YEAR . By doing so Pvt company members exceed to 200 members ? ANY ONE CAN EXPLAIN

SUMANTH MANNAVA

CA Inter

★ 5K+

01-Sep-21 17:37

548

Answers (5)

No, private company can't exceed its members by 200.

Sahibdeep Singh

CA Inter

★ 14K+

01-Sep-21 20:10

By doing private placement means it members also exceed 200. This is confusing, can you elaborate ?

Thread Starter

SUMANTH MANNAVA

CA Inter

★ 5K+

03-Sep-21 21:40

Thread Starter

SUMANTH MANNAVA

By doing private placement means it members also exceed 200. This is confusing, can you elaborate ?

Private placement can be done to upto 200 persons in aggregtate in a financial year. But, while doing so, private company will have to make sure, its members don't exceed 200. Hope this clarifies

Sahibdeep Singh

CA Inter

★ 14K+

04-Sep-21 16:01

Yes sir

Thread Starter

SUMANTH MANNAVA

CA Inter

★ 5K+

04-Sep-21 16:06

Sahibdeep Singh

Private placement can be done to upto 200 persons in aggregtate in a financial year. But, while doing so, private company will have to make sure, its members don't exceed 200. Hope this clarifies

This is correct!

N J

CA Final

★ 170

04-Sep-21 16:28