Increase in Number of members

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This query is : Resolved

Raj Dutta (Querist)

07 March 2011 A public ltd co had been carrying on its business with just 2 members later with in 6 months it increased it to 9 by "TRANSFERRING SOME SHARES FROM THE EXISTING SHAREHOLDERS TO THE NEW MEMBERS"

So It sufficient compliance as regards number of members of a public ltd .co i.e Can the numbers of members be increased by just simply transferring the shares( For Consideration).

Confused.

Please clarify

With Regards

Raaj

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)

08 March 2011 Yes number of shareholders can be increased by transferring shares.

Jayashree S Iyer

Jayashree S Iyer (Expert)

08 March 2011 As per Section 45 a public company must have a minimum of 7 members, so in the first instance I wonder how it had run with only 2 members so far. Probably it was converted from a private to a public limited company.

As regards increase in number of members by transfer of shares, it is perfectly in order.

Raj Dutta

Raj Dutta (Querist)

12 March 2011 yes it was converted from a private to a public limited company.

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