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
• B. No
• C. Nothing written in law about it
• D. None of the above

Answer 1

Answer: (B)

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.