Commercial Applications
The number of members in a private company are :
- Minimum = 5, Maximum = 100
- Minimum = 2, Maximum = 200
- Minimum = 7, Maximum = No limit
- None of these
Joint Stock Company
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Answer
Minimum = 2, Maximum = 200
Reason — A private company must have a minimum of 2 members and a maximum of 200 members (excluding members who are or were in the employment of the company). This is one of the key distinguishing features of a private company as per the Companies Act, 2013. A public company, in contrast, requires a minimum of 7 members with no maximum limit.
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Related Questions
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Statement II : It is very easy to maintain business secrets.
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