Question

The number of members of a private company cannot exceed _________.

• A. $200$
• B. $100$
• C. $50$
• D. $500$

Answer 1

Answer: (A)

$200$

Section 2(68) of Companies Act, 2013 defines private companies.

The Section further says private companies can have a maximum of 200 members (except for One Person Companies). This number does not include present and former employees who are also members.

Moreover, more than two persons who own shares jointly are treated as a single member.