Can you explain the answer of this question below:A public company can have a maximum of _________member.A:UnlimitedB:50C:20D:10The answer is a.

Question

Answer

There is no upper limit in case of a public limited company.

No Maximum number as such, can be unlimited.

Answer

As per the company's act 1956 the public company have minimum 2 and maximum unlimited... members...

Answer

As per 2013 of Indin Partnetship act minimum is 50 in all sectors maximum is unlimited in case of company

Answer

A. unlimited

Answer

According to sec 3 (1) public company minimum 2 and maximum 'UNLIMITED'member are to require for 'commencement of public limited company '.

Answer

Unlimited

Answer

A public company can have a maximum of Unlimited members.

Explanation:
A public company is a type of business organization that offers shares of its stock to the general public. It is governed by various laws and regulations, including the Companies Act. In the context of this question, the Companies Act does not specify a maximum limit on the number of members a public company can have. Therefore, a public company can have an unlimited number of members.

To further understand this answer, let's break it down into key points:

Unlimited members in a public company:

- Public companies are established with the intention of raising capital from the general public by issuing shares of stock.
- Unlike private companies that have restrictions on the number of shareholders, public companies can have an unlimited number of shareholders.
- The primary advantage of having unlimited members is the ability to raise a large amount of capital, as there is no cap on the number of investors who can purchase shares.
- Having a large number of members also allows for greater diversification of ownership and reduces the concentration of power in the hands of a few individuals.
- The Companies Act, which governs the functioning of public companies, does not impose any specific limit on the maximum number of members a public company can have.
- However, it is important to note that while there is no restriction on the number of members, public companies need to comply with other regulations and requirements set forth by the Companies Act, such as filing annual reports, holding annual general meetings, and maintaining transparency in their operations.

In conclusion, a public company can have an unlimited number of members. This flexibility allows public companies to attract a wide range of investors and raise substantial capital for their business activities.

Similar CA Foundation Doubts

Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a.

Maximum no .of members in case of public company is

No shares can be allotted by a public company unless it collects ___________.

Liability of a member in case of a private company is

Table…………..is for memorandum of association of an unlimited company

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