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What is the minimum number of members required to form a public company in India?
- a)One member
- b)Two members
- c)Five members
- d)Seven members
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
What is the minimum number of members required to form a public compan...
To form a public company in India, a minimum of seven members are required. These members will subscribe their names to the Memorandum of Association and fulfill other legal requirements for company registration.
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What is the minimum number of members required to form a public compan...
Minimum Members Required for a Public Company in India
In India, the formation of a public company is governed by the Companies Act, 2013. Understanding the minimum number of members required is crucial for aspiring entrepreneurs.
Definition of a Public Company
A public company is defined as a company that is not a private company and is allowed to offer its shares to the public. It can also have a larger number of shareholders.
Minimum Membership Requirement
- According to Section 3 of the Companies Act, 2013, a public company must have at least seven members at the time of its incorporation.
- This requirement ensures that the company has a broader ownership base, which is essential for raising funds through public offerings.
Comparison with Private Companies
- In contrast, a private company requires only two members to start.
- The distinction highlights the more extensive nature of public companies, which often aim for larger capital accumulation and public participation.
Conclusion
To summarize, the minimum number of members required to form a public company in India is seven. This requirement underscores the importance of collective investment and public trust in such companies, contributing to a more robust economic environment.
Understanding these regulations is vital for anyone looking to venture into the corporate world in India.
In India, the formation of a public company is governed by the Companies Act, 2013. Understanding the minimum number of members required is crucial for aspiring entrepreneurs.
Definition of a Public Company
A public company is defined as a company that is not a private company and is allowed to offer its shares to the public. It can also have a larger number of shareholders.
Minimum Membership Requirement
- According to Section 3 of the Companies Act, 2013, a public company must have at least seven members at the time of its incorporation.
- This requirement ensures that the company has a broader ownership base, which is essential for raising funds through public offerings.
Comparison with Private Companies
- In contrast, a private company requires only two members to start.
- The distinction highlights the more extensive nature of public companies, which often aim for larger capital accumulation and public participation.
Conclusion
To summarize, the minimum number of members required to form a public company in India is seven. This requirement underscores the importance of collective investment and public trust in such companies, contributing to a more robust economic environment.
Understanding these regulations is vital for anyone looking to venture into the corporate world in India.
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What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer?
Question Description
What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer?.
What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the minimum number of members required to form a public company in India?a)One memberb)Two membersc)Five membersd)Seven membersCorrect answer is option 'D'. Can you explain this answer?.
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