Under the Companies Act, 2013, what is the maximum number of members in a Private Limited Company (excluding employee-members)?
Answer and explanation
Correct answer: D.
- Step 1: Examine Section 2, clause 68 of the Companies Act, 2013, which defines a private company.
- Step 2: Under clause 68 of Section 2, a private company by its articles limits the number of its members to two hundred.
- Step 3: The section clarifies that persons who are in the employment of the company, and persons who were formerly in employment and continue to be members after that employment ceased, are excluded from this limit. Thus, the statutory maximum is .
Answer
.
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