Consider the following differences between a private limited company and a public limited company?

  1. While there is a complete restriction on transferability of shares in Private Ltd. Company, such restricts don't exist for public limited company
  2. A Private Limited Company needs to obtain a 'commencement of business' certificate before starting operations

Which of the above is / are correct?

Answer: [A] Only 1

The second statement is incorrect here. Public Ltd. Companies need to  obtain a 'commencement of business' certificate before starting operations. Not required for Pvt. Ltd. Company. 

This question is a part of GKToday's Integrated IAS General Studies Module