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To form a Public company, there must be minimum 2 persons/promoters.

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Questions

To form a Public company, there must be minimum 2 persons/promoters.

A Public Limited Company should have a minimum number of two members. State True or False with reasons.

Options

  • True

  • False

MCQ
True or False
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Solution

The given statement is False.

Reasons:

A Public Limited Company must have a minimum of seven members, not two.

This is clearly stated under the Companies Act, 2013, which defines that: “A public company must have a minimum of 7 members and can have unlimited maximum members.”

Having only two members applies to a Private Limited Company, not a public one.

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Formation of a Company
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Chapter 3: Formation of a company - Exercise Q.1 [Page 45]

APPEARS IN

Balbharati Secretarial Practice [English] 11 Standard Maharashtra State Board
Chapter 3 Formation of a company
Exercise Q.1 | Q 4.02 | Page 45
C. B. Gupta Business Studies [English] Class 12 ISC
Chapter 17 Various Business Entities
EXERCISES | Q II. 6. | Page 256

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