Partners and shareholders for private companies

The Indian Companies Act of 2013 sets out several regulations related to the partners and shareholders for private companies. The Act lends a democratic power to the shareholders for private firms under which shareholders and all the other stakeholders can make use of the possibilities related to class action suits. This would also make it possible for them to remain more aware and alert. The Act also limits the maximum number of partners that a certain company can have. This limit is up to a hundred and cannot exceed further. However, an exception to this limitation can be seen in case of certain association partnerships that will not be bound by this fixed limit. Some examples of such association partnerships will include CA's, lawyers, company secretaries and the like.

The maximum number of shareholders for a private company has been increased to 200 by the Act. The Act also vests the shareholders with powers to sanction several limits in case of required approvals related to important transactions at different levels. This supremacy of shareholders that is allowed by the Companies Act 2013 is a good way that has reduced the need for acquiring permissions related to managerial remuneration in case of private companies.