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Question

In a private Ltd. Co. at the time of incorporation there were 198 members. After that an employee joined having 15 debentures and having 2 shares. Did the company cross the maximum limit ?

A
Yes
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B
No
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C
Nothing written in law about it
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D
None of the above
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Solution

The correct option is A No
As per – section 2(68) of companies Act 2013, the limit of the number of members of a private company has been increased from 50 to 200. Here, the number of members does not cross 200 and hence the company has not crossed the maximum limit.

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