Which company must have at least two mem

CUET Preparation Today

Start Free Mocks

Home Questions NHZV5B62PX

Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

Which company must have at least two members?

Options:

Public company

OPC

Private Company

Holding company

Correct Answer:

Private Company

Explanation:

The correct answer is option 3- Private Company.

Private Company must have at least two members.

Private Company: A private company is one which by its articles of association:

(a) Restricts the right to transfer its shares;
(b) Limits the number of its members to 200 (excluding its employees);
(c) A private company must have at least 2 persons, except in case of one person company.