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Questions and Answers
What is the minimum number of members required for a private company?
What is the minimum number of members required for a private company?
- 2 members
- 7 members (correct)
- 10 members
- 5 members
Which type of company has a maximum limit of 200 members?
Which type of company has a maximum limit of 200 members?
- Private company
- One person company
- Public company (correct)
- Dormant company
What defines a holding company?
What defines a holding company?
- It is owned by one individual.
- It operates as a nonprofit entity.
- It has no subsidiaries.
- It controls other companies through majority shareholding. (correct)
In terms of liability, what is the characteristic of a limited liability company?
In terms of liability, what is the characteristic of a limited liability company?
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In a one person company, what happens to the company upon the death of its owner?
In a one person company, what happens to the company upon the death of its owner?
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How many minimum members must a company have to qualify as a private company?
How many minimum members must a company have to qualify as a private company?
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What might characterize a subsidiary company?
What might characterize a subsidiary company?
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What can be the legal status of a dormant company?
What can be the legal status of a dormant company?
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Study Notes
Company Law Questions
- Statutory Companies are registered under the Companies Act.
- A Subsidiary Company holds more than half of the total share capital of another company.
- A Private Company must have a minimum of 7 members.
- A Public Company can have a maximum of 200 members.
Company Terms
- A Dormant Company is a company that is registered but does not carry on any active business.
- A Holding Company is a company that controls other companies.
- A Company Limited by Guarantee is a company where the liability of the members is limited to the amount they have agreed to contribute if the company winds up.
- An Associate Company is a company that is related to another company in a specified way.
- Perpetual Succession is the concept that a company continues to exist even if its members change.
- A Government Company is a company that is owned or controlled by the government.
- A Listed Company is a company whose shares are traded on a stock exchange.
- A Foreign Company is a company incorporated outside of the country in which it is operating.
- Limited Liability means that the liability of the members of a company is limited to the amount they have invested in the company.
- A One Person Company is a company that has only one member.
Case Studies
- Super Drinks Pvt. Ltd.
- The maximum number of members for the company is unclear.
- It is unclear if the company can invite the general public to buy shares.
- It is unclear if shareholders can sell shares to outsiders.
- Kali VFX Ltd.
- The minimum number of members in this company is 2.
- It is unclear if the company can sell its shares to outsiders.
- The maximum number of members is unclear.
- Sunset Printers Pvt. Ltd.
- It is a One Person Company.
- The liability of Mr. Manoj is limited.
- It is unclear if the company will close down on the death, insanity or insolvency of Mr. Manoj.
- TIPS Paints Ltd.
- It is unclear if Mr. John will have to pay the company any further money.
Important Notes
- Many questions require more context and complete information to answer definitively.
- Several questions ask if something is possible, but the text does not definitively state what the rules are.
- The specific company law or Acts being referenced are not clearly defined.
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