Memebrs

Save Share

This query is : Resolved

Guest

Guest (Querist)

27 October 2013 Minimum members and Maximum members limit
Minimum capital and Maximum capital limit

in case of
PVT LIMITED COMPANY ,
pUBLIC LIMITED COMPANY ,
LLP

Ajay Mishra

Ajay Mishra (Expert)

27 October 2013 Hi

This clause is required to state the authorised or nominal capital with which the company having a share capital is to be registered and the division thereof into shares of a fix amount. This capital is variously described as 'registered', 'authorised' and 'nominal' capital. In this connection the authorised capital should not be less than the minimum paid-up capital required Rs. 5,00,000 for public company and Rs. 1,00,000 for private limited company.
In case of an unlimited company, the liability of the members towards the outsiders is unlimited in the event of winding up of the company, while it remains limited to the value at which the shares are subscribed by them and remain unpaid, so long as the company is a going concern. However, the same should be specifically stated in the Memorandum. The requirement of section 13(4)(a) is not mandatory in such case.

Requirements of minimum paid-up capital
Every private company requires minimum paid up capital of Rs. 1 lakh and public company requires minimum paid up capital of Rs. 5 lakhs. Now new company cannot be registered which is having less than the minimum paid-up capital required
However, as per section 3(6) no criteria for minimum paid up capital is applicable for the Companies registered under the provisions of section 25 of the Act. It is not stated in this provision when the new companies should issue the minimum shares after incorporation and make them paid-up to the extent required under the law. However the promoters shall undertake to subscribe in the Memorandum and Articles, the minimum amount of capital as required and should allot the same at the first Board meeting of the company.

Ajay Mishra

Ajay Mishra (Expert)

27 October 2013 Minimum Number of Members:
(1) According to section 12, there should be at least two persons subscribing to Memorandum of Association in case of private company and seven in case of public company.
(2) The names of subscribers to Memorandum of Association must tally with the names of promoters as given in application for availability of name. (See the Circular No. 1/90, dated 5-1-1990).
(3) In case one or more of the promoters, whose name have been included in application for availability of name, are no more interested in incorporation of the Company, no-objection letter from such promoter should be obtained and made available to MCA/ROC at the time of registration of the company.

Provisions of section 12(1) of the Companies Act, 1956 are relevant in this situation, which provides that in order to form a public company limited by shares at least seven persons and in case of a private company limited by shares at least two persons have to subscribe their names to Memorandum of Association.

Message likes : 1 times

Ankur Garg

Ankur Garg (Expert)

27 October 2013 Minimum members:

Public company== 7

Private company== 2

**************************

Maximum members:

Public company== no limit

Private company== 50

Message likes : 1 times

Ankur Garg

Ankur Garg (Expert)

27 October 2013 Minimum Authorised capital:

Public company== 5 Lacs

Private company== 1 Lacs

**************************

Maximum capital:

Public company== no limit

Private company== no limit

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now