What is a private company.
A private company is one which is defined by specific conditions laid down in its Articles of Association. The primary characteristic is that it restricts the right to transfer its shares, preventing the free transferability often found in public companies.
Regarding membership, a private company must have a minimum of two persons, except in the case of a One Person Company. Additionally, it limits the number of its members to 200, excluding its employees. These restrictions ensure the company remains a closely held entity.
Explanation
The answer is derived directly from the context provided under section (ii) Private Company. It strictly adheres to the three conditions mentioned: restriction on share transfer, minimum members (2), and maximum members (200). External knowledge regarding invitation to the public for subscriptions was excluded as it was not present in the provided text.