Multiple choice

When a private company takes its members beyond 50, it is conversion of a private company into a public company by

  1. default

  2. operation of law

  3. choice

  4. none of these

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A Correct answer
Explanation

 When a private  company takes its members beyond 50, it is conversion by default. According to Sec3(1)(iii) if a private company takes its members to more than 50, it automatically becomes a public company and it has to fulfill the obligations of a public company.

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