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Explain why the owners of a company might choose to keep it private.

Explain why the owners of a company might choose to keep it private.

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The owners of the company prefer to keep the company as private limited due to the following reasons:

1. The time taken for the issue of shares and raising capital is significantly less.

2. Statutory compliance is less.

3. It provides significant control to a small group of investors.

4. Less number of directors required.

5. Restriction on transferability of shares ensures to a certain extent that ownership remains in the hands of those desired.

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