Question
Which section of the Companies Act lays down provisions
relating to the maximum number of persons required to form a private company?Solution
Section 2(68) private company- āprivate companyā means a company having a minimum paid-up share capital as may be prescribed, and which by its articles: (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred: Provided 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.
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