A private limited company is that which i. restricts the right to transfer its share. ii. has a minimum of seven members. iii. limits membership to fifty. i...

A private limited company is that which i. restricts the right to transfer its share. ii. has a minimum of seven members. iii. limits membership to fifty. iv. offers its shares for sale to the public

Answer Details

The correct answer is (i) and (iii): A private limited company is a type of company that has a legal structure and is registered under the Companies and Allied Matters Act (CAMA) in Nigeria. It is characterized by having restrictions on the right to transfer its shares, which means that the shares cannot be freely bought and sold in the open market. This is because the company has a limited number of members, usually not more than fifty, and these members are known to one another. In addition, a private limited company does not offer its shares for sale to the public. This means that the company cannot raise capital by inviting the general public to buy its shares. Instead, the shares are usually owned by the founders, family members, or close associates of the company. Therefore, options (i) and (iii) are correct as they correctly describe the characteristics of a private limited company.