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      Question

      As per the Companies Act, 2013 (corresponding to the

      1956 Act principles), what is the maximum number of members a Private Company can have?
      A 20 Correct Answer Incorrect Answer
      B 50 Correct Answer Incorrect Answer
      C 100 Correct Answer Incorrect Answer
      D 200 Correct Answer Incorrect Answer
      E Unlimited Correct Answer Incorrect Answer

      Solution

      Under the modern Companies Act (and as evolved from the 1956 Act), a private company is defined by its articles which restrict the right to transfer shares and limit the number of its members to 200 (excluding employees and ex-employees who were members during employment).

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