What Is a Private Company?

Private companies (Private Company). Some companies are owned by family, shareholder groups or individuals, and their ownership shares are not sold publicly. Such companies are called private companies. Private enterprises are also referred to as non-governmental organizations and sometimes non-listed companies. Shareholders and board members are natural persons or other private legal persons. The organizational structure of private companies is relatively simple, such as small and medium enterprises, but some private companies are subsidiaries or parent companies of large groups. Their corporate governance and transparency do not need to be publicly announced, unless they are designated private companies such as private banks , Securities companies, charities, etc.

private company

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Private companies (Private Company). Some companies are owned by family, shareholder groups or individuals, and their ownership shares are not sold publicly. Such companies are called private companies. Private enterprise

Article 29 (1) of the Companies Ordinance stipulates that a private company means a company whose articles of association must contain appropriate provisions to restrict the following three aspects: 1. 1. the right to restrict the transfer of its shares; 2. The number of members of the company does not exceed 50, but does not include those employed by the company, nor persons who have previously been employed by the company and have been members of the company during and after termination of employment; It is forbidden to invite the public to subscribe for any shares or debentures (bonds) of the company. Article 29 (2) provides that if two or more persons jointly hold one or more shares, such persons shall be considered as a single member. A company limited by shares and an unlimited company without shares may also be registered as private companies as long as their articles of association meet the requirements of Article 29 (1) of the Companies Ordinance. Nevertheless, Schedules C, D, and E of the Companies Ordinance apply only to companies limited by guarantee and unlimited companies, whether they are private companies or public companies.