Section 3 - Definitions of 'company', 'existing company', 'private company' and 'public company'.

Definition of private and public company clarifies membership, transfer restrictions and minimum paid up capital requirements.

Section 3 defines company, existing company, private company and public company. An existing company is one formed under prior companies laws or corresponding local enactments; exclusions and territorial exceptions are listed. A private company is characterised by prescribed minimum paid up capital, restrictions on share transfer, membership limits (with employment exceptions), prohibition on public subscription invitations and restrictions on deposit acceptance. A public company is any company not a private company and is subject to higher prescribed paid up capital; a private company that is a subsidiary of a non private company is treated as public.