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What is the maximum number of members allowed in a private company, excluding employee members?
  • a)
    50
  • b)
    100
  • c)
    200
  • d)
    Unlimited
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is the maximum number of members allowed in a private company, ex...
- A private company is generally restricted in the number of members it can have, excluding employee members.
- According to the Companies Act, 2013, in India, the maximum number of members allowed in a private company is 200.
- This exclusion of employee members means that employees holding shares are not counted towards this limit.
- The purpose of this restriction is to maintain the private nature of the company by limiting the spread of ownership.
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What is the maximum number of members allowed in a private company, excluding employee members?a)50b)100c)200d)UnlimitedCorrect answer is option 'C'. Can you explain this answer?
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