Q.State the minimum number of members required to form a private company and a public company.

The Companies Act, 2013 fixes different minimum membership requirements for private and public companies. …

The Companies Act, 2013 lays down minimum membership requirements that a company must satisfy at the time of, and after, incorporation.

A private company, as defined under Section 2(68), must have a minimum of two members. Its articles also cap its membership at 200 members (excluding present and past employee-members who continue to hold shares), reflecting its more closely held character.

A public company, as defined under Section 2(71), must have a minimum of seven members, and the Act places no upper limit on how many members a public company may have — this is consistent with its ability to invite the general public to subscribe for its shares. …

A frequent slip is reversing the numbers (writing 7 for private and 2 for public) — remembering that a public company needs public-scale participation (7) whi …