Definition of Exempt Private Company? Meaning of Exempt Private Company? What is Exempt Private Company?

Exempt Private Company: A private company in the shares of which no beneficial interest is held directly or indirectly by any corporation and which has not more than 20 members is regarded as an “exempt private company”. Such companies are exempted from some of the provisions of the Companies Act (Cap 50).

For example, an exempt private company is exempted from prohibitions against loans, quasi-loans and restricted transactions to its directors or to companies related to its directors under sections 162 and 163 of the Act.

If an exempt private company is solvent, it need not attach its financial statements to its annual returns when filing these with ACRA but can simply complete an online declaration of solvency instead.