Home › CS Executive › sbec › Choice of Business Organisation › The lesson distinguishes a public company from a…
The lesson distinguishes a public company from a private company by member count and transfer rules. What is the minimum number of members required to form a public company?
Answer & Solution
Correct answer: D.
1. The lesson lists the features of a public company.
2. A public company must have at least 7 members at incorporation.
3. It also allows free transfer of shares and public subscription.
4. So the floor for a public company is 7 members.
_Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._
Related questions
The lesson closes by saying the various factors do not exist in isolation and identifying A solo founder running an OPC is approached by an angel investor who wants to take 10% equAn entrepreneur wants minimum government interference in routine decision-making and is wiA boutique trader believes that supplier prices and customer lists must stay strictly confA family wishes to pool assets and earn business income as a Hindu Undivided Family ratherThe lesson defines a cooperative organisation as an association formed by certain types ofA founder wants to sell perishable food products only within one city and may shift the woA manufacturer wants to pivot from cotton textiles to sugar manufacturing as a substantial