Question

The Minimum number of persons required to incorporate a Public Company is

• A. 5
• B. 10
• C. 7
• D. 2

Hint:

Remember the minimum and maximum member limits for companies: - Private Company: Min 2, Max 200. - Public Company: Min 7, No maximum limit. - One Person Company: Min 1, Max 1. This is a fundamental and frequently asked question in company law.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The Companies Act, 2013, lays down the minimum requirements for the formation and incorporation of different types of companies.

Step 2: Detailed Explanation:
Section 3 of the Companies Act, 2013, deals with the formation of a company. It specifies the minimum number of persons required for different types of companies:
- For a public company, a minimum of seven or more persons are required.
- For a private company, a minimum of two or more persons are required.
- For a One Person Company (OPC), only one person is required.
The question asks for the minimum number for a public company.

Step 3: Final Answer:
The minimum number of persons required to incorporate a Public Company is seven.