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Question
Where two or more persons hold one or more shares in a private company jointly, they shall be counted as a ______ member.
Where two or more persons hold one or more shares in a private company jointly, they shall be counted as a ______ member.
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Solution
The correct option is D Single
- As per section 2 (68) of the Companies Act, 2013 private company means a company having a minimum paid-up share capital and which by its articles restricts the right to transfer its shares and limits the number of its members to two hundred. The proviso of this section states that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member.
- This means that in case of joint shareholders, each of joint shareholder is a separate member of the Company except where the Act provides that the Joint Shareholders would be treated as single member as provides in Section 2(68)(ii) of the Companies Act, 2013 in case of a private limited Company.
- As per section 2 (68) of the Companies Act, 2013 private company means a company having a minimum paid-up share capital and which by its articles restricts the right to transfer its shares and limits the number of its members to two hundred. The proviso of this section states that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member.
- This means that in case of joint shareholders, each of joint shareholder is a separate member of the Company except where the Act provides that the Joint Shareholders would be treated as single member as provides in Section 2(68)(ii) of the Companies Act, 2013 in case of a private limited Company.
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