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      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 byβ€” (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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