Question #01

How many minimum and maximum number of members in a-private

Company?

Members in a-private Company:

The minimum numbers of members required for private company is two and maximum number
of members in a private company is 200 excluding members who are or were employment of the
company.

Minimum and maximum number of members in a-private Company

Features Private limited company

Minimum members 2

Minimum directors 2

Maximum members 200

Question 2

What are the kinds of company on the basis of members?

Companies on the basis of member:

 One person company (OPC)

 Private company
 Public company

One Person Company:

Implementation of Act 2013, define OPC as company which has only one person as member.

It is similar to a sole proprietorship but the owner shall have limited liability and thus his
personal assets would not be at risk if losses need to be recovered or if the company is liquidated.
Private company:

Private company are those whose article of association restrict free transferability of shares. In
terms of member private companies need to have minimum of 2 and maximum of 200 members.

Public company:

Public companies allow their members to freely transfer their share to others. Secondly they need
to have a minimum of 7 members but the maximum numbers of members they have unlimited.

Question 3

What is meant by ‘One Person Company? Explain in detail.

What is One Person Company?

As per Section 2(62) of the Companies Act, 2013, One Person Company is a company that
comprises a single person as a shareholder and can be contrasted with private companies. The
members of a company are nothing but subscribers to its Memorandum of Association (MoA), or
its shareholders. These companies get all the benefits of a private company such as them to have
access to credits, bank loans, limited liability, legal protection, etc.
It is to be noted that private companies comprise a minimum of two members. Apart from One
Person Company mode, an individual can get into the business through a sole proprietorship
mode too. 

Features of One Person Company:

 An individual can form a company for any lawful purpose. As per the Companies Act,
2013, OPCs are private companies. 
 While registering the company as OPC, an individual is required to mention a nominee. 
 In case of the death of the owner of OPC, the nominee has the right to choose or reject to
become the sole owner of the company. 
 OPCs can have a maximum of 15 directors. 
Benefits of One Person Company:
 In the case of One Person Company, the person and his company are considered as separate
legal entities. 
 The owner of the company is not liable to repay the debts of the company. 
 OPCs can raise equity funding and are eligible for government schemes.

Question 4

Differentiate between holding and subsidiary company

Different between holding and subsidiary company

Holding Company Subsidiary company
A holding company is a company that A subsidiary (sub) is a business entity
doesn’t conduct any operations, ventures, or or corporation that is fully owned or partially
other active tasks for itself. Instead, it exists controlled by another company, termed as the
for the purpose of owning assets. In other parent, or holding, company.  Ownership is
words, the company does not engage in the determined by the percentage of shares held by
buying and selling of any products and the parent company, and that ownership stake
services. Instead, it was formed so that it must be at least 51%
gains control over one or more companies.
Example Example
One of the best-known holding companies 1. Facebook is a popular company in the
is Berkshire Hathaway. Warren Buffett’s digital industry. It has various subsidiaries
company owns GEICO, Dairy Queen and acquired from time to time. Instagram is a
Fruit of the Loom among other businesses. photo-sharing application acquired by
Another well-known holding company is Facebook in April 2012. It also acquired
Alphabet, which owns Google, YouTube, WhatsApp – a popular messaging
Nest and other companies. application in 2014. Lastly, in March 2014,
it bought shares of a virtual reality
These holding companies are conglomerates
company, Oculus.
that own a number of otherwise unconnected
2. Google & Nest are subsidiaries of
businesses.
Alphabet.
3. TCS – Tata consultancy services are of
TATA Group.
4. Jio belongs to the Reliance Group.
 5. Lenovo acquired Motorola.

Question 5

Differentiate between chartered and listed companies?

Differentiate between chartered and listed companies

Chartered companies Listed companies
The crown in exercise of the royal prerogative According to various sources, listed companies
has power to create a corporation by the grant are those which are included and traded on a
of a charter to persons assenting to be particular stock exchange. The stock exchanges
incorporated. Such companies or corporations have various prerequisites that a company must
are known as chartered companies. Examples fulfil and continue to fulfil in order to be and
of this type of companies are Bank of stay listed.
England (1694), East India Company (1600). A company whose shares are traded on an
The powers and the nature of business of a official stock exchange. It must adhere to the
chartered company are defined by the charter listing requirements of that exchange, which
which incorporates it. After the country may include how many shares are listed and a
attained independence, these types of minimum earnings level.
companies do not exist in India.
Example Example
Such companies or corporations are known  Apple
as chartered companies.   Alphabet
Examples of this type of companies are:  Microsoft
 JPMorgan Chase
 Bank of England (1694)
 East India Company (1600). The powers
and the nature of business of a chartered
company are defined by the charter which
incorporates it.
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