Multiple choice

In case of a public company

  1. there should be at least seven members and maximum number of members should not exceed fifty

  2. there should be at least seven members and maximum number of members should not exceed hundred

  3. there should be at least two members and maximum number of members should not exceed fifty

  4. there should be at least seven members and there is no restriction on the maximum number of members
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Companies Act, a public company must have a minimum of seven members (Section 3(1)(iv)). Unlike private companies which are capped at 200 members, public companies have no maximum membership limit - they can have any number of shareholders. This makes option D the correct statement.

Keep practicing — related questions