12. What is a private ltd company?

Answer: A company formed and regulated under the Companies Act on a limited liability basis with a minimum of 2 and a maximum of 50 shareholders is called a Private Limited Company.

13. What is a Public Limited Company?

Ans: A company formed and registered with perpetual existence having artificial personality on a voluntary limited basis with minimum 7 shareholders and maximum number of issued shares is called Public Limited Company as per Company Act.

14. What is registration?

Answer: The certificate issued by the company as proof of registration is called registration certificate.

15. What is bonus share?

Ans: The dividend distributed to the old shareholders in the form of shares as per the decision of the general meeting of the directors to convert the accumulated funds of the company into capital is called bonus shares.