Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
What is the maximum number of members in a private company?
Options:
7
20
200
No limit is prescribed
Correct Answer:
200
Explanation:
Private Company: A private company is one which by its articles: (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)