There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  A public company must have at least 7 members and a maximum any number of shareholders.
Reason (R):  A private company must have at least 2 members and maximum of 200 shareholders.

Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

Private Company: A private company is one which by its articles of association: (a) Restricts the right to transfer its shares; (b) A private company must have at least 2 persons, except in case of one person company; (c) Limits the number of its members to 200 (excluding its employees).
A public limited company is a voluntary association of members which can be incorporated by seven or more persons. It has a separate legal existence apart from its members who compose it. It must have a minimum of seven members but there is no limit as regards the maximum number.