Section 19, The Companies Act, 2009

(1) A private company is one which is stated in itsmemorandum to be a private company. (2) Every private company shall, by its articles, restrict the transfer of its shares, if any. (3) The total number of members of a private company shall not exceed 50, excluding persons who are bona fide in the employment of the company, or were while in that employment and have continued after the determination of that employment, to be members of the company. (4) Where two or more persons hold one or more shares in a company jointly, they shall, for the purpose of subsection (3) be treated as a single member. (5) A private company shall not, unless authorised by law invite the public to– (a) subscribe for any shares or debentures of the company; or (b) deposit money for fixed periods or payable at call, whether or not bearing interest.