What is the limit of members in case of private company
Answers
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200
Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013. Limited liability: The liability of each shareholder or member is limited.
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Answer:
The limit of members in a private company is as follows:
Shareholders: Minimum: 2; Maximum: 200
Directors: Minimum:2; Maximum: 15
Explanation:
Private company:
A private company is an entity operated under private ownership or holding. They may issue stock and consist of shareholders, but their shares are not traded on public exchanges or sold through IPO (Initial Public Offer), etc.
Shareholder:
A shareholder is an individual, company, or institution that owns shares of a company's stock. They essentially own the company up to the extent of their shares which carries some rights and responsibilities.
Directors:
Directors are responsible for managing and looking after the business of a company. They play multiple roles in a company. such as employee, trustee, agent, etc.
Thus, for a private company, the following are the limits on the number of members:
Shareholders: Minimum: 2 and Maximum: 200
Directors: Minimum: 2 and Maximum: 15