Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

The maximum number of members for a private company is :

Options:

100

200

300

Unlimited

Correct Answer:

200

Explanation:

The correct answer is Option 2 - 200.

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 the case of one person company.
(c) Limits the number of its members to 200 (excluding its employees).