The Minimum number of persons required to incorporate a Public Company is
Show Hint
- 5
- 10
- 7
- 2
The Correct Option is C
Solution and Explanation
Step 1: Understanding the Concept:
The question asks for the minimum number of members (or subscribers to the memorandum) required to form a public limited company under the Companies Act.
Step 2: Detailed Explanation:
The provisions for the formation of a company are laid down in the Companies Act, 2013 (which replaced the Companies Act, 1956). The requirements are consistent in both Acts.
Section 3(1) of the Companies Act, 2013, states that a company may be formed for any lawful purpose by—
(a) seven or more persons, where the company to be formed is to be a public company;
(b) two or more persons, where the company to be formed is to be a private company; or
(c) one person, where the company to be formed is to be a One Person Company.
The requirement for a public company is a minimum of seven members.
Step 3: Final Answer:
The minimum number of persons required to incorporate a Public Company is 7.
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