Section 10 : Terms to be abided by company

A company incorporated under this Act shall, in addition to the conditions laid down in this Act, the management letter or the rules, comply with the following conditions: –

(a) All transactions shall be carried on in the name of the Company.

(b) The private company shall write “Private Limited” behind its name and the public company shall write “Limited” behind its name.

However, this rule does not apply to companies that do not distribute profits.

(c) Private companies should not sell their shares and debentures openly.

(d) A private company shall not, without completing the procedures provided for in the management letter, the rules or the unanimous agreement, mortgage or in any other way relinquish rights to persons other than its equity shareholders.

(e) The company should not open a partnership or private firm.

(f) Except as otherwise provided in this Act, a company which does not distribute profits shall not distribute dividends to its members or pay any amount directly or indirectly to the members or their immediate relatives.