Question

A public company is required to have a minimum of ______ and no maximum limit on the number of members.

Options

• two

• one

• seven

Answer 1

A public company is required to have a minimum of seven and no maximum limit on the number of members.

Explanation:

Legally forming a public company requires seven members. This minimum ensures that a group owns and controls the company, not a person or small group. Public companies have no membership limit, unlike private companies, which have 200. It can raise enormous quantities of funds on stock exchanges with this feature. Many large organizations choose to operate as public companies because of the flexibility in member numbers.