Correct option is D
According to
Section 2(68) of the Companies Act, 2013, a
private company must have a minimum of
2 members. Earlier, under the Companies Act, 1956, the same requirement existed, and this provision continues under the revised law.
A private company restricts the right to transfer its shares, limits the number of its members to 200, and prohibits invitation to the public for subscription of shares or debentures. The presence of at least two members ensures the company retains its separate legal identity while still operating with limited public exposure.
Thus, the correct answer is
(d) 2.
Information Booster
1. Maximum number of members in a private company:
200.
2. Minimum number of directors:
2.
3. Private companies cannot invite the public to subscribe to their securities.
4. They must include the words
“Private Limited” at the end of their name.
5. Enjoy more operational flexibility compared to public companies.
English
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