New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What is the minimum number of members required to form

    a public company?
    A Minimum two members Correct Answer Incorrect Answer
    B Minimum seven members Correct Answer Incorrect Answer
    C No such prescribed number Correct Answer Incorrect Answer
    D As the Central Government may prescribe Correct Answer Incorrect Answer

    Solution

    Minimum seven members, Explanation: Section 3. Formation of company: (1) A Company may be formed for any lawful purpose by— (a) seven or more persons, where the company to be formed is to be a public company; (b) two or more persons, where the company to be formed is to be a private company; or (c) One Person, where the company to be formed is to be One Person Company that is to say, a private company, by subscribing their names or his name to a memorandum and complying with the requirements of this Act in respect of registration.

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