banner_ad

Minimum no. of members in pvt. ltd. co.

This query is : Resolved 
Profile Image

Profile Image

(Querist)
24 November 2011 THE MINIMUM NO. OF MEMBERS IN A PRIVATE LTD. CO. IS 2 BUT IF A COMPANY IS HAVING 100% OF SHAREHOLDING IN ANOTHER CO. THAN IT IS VALID?
WHY?
Profile Image

Charu Srivastava

Profile Image

Charu Srivastava (Expert)
24 November 2011 Section 45 of the Companies Act, 1956 states that there shall be atleast 2 members incase of Private limited Company.IF the Company constinues to carry on business with fewer than 2 member, the members shall be severally liable for tha payment of whole debts and can be sued.

So A company cannot hold 100% shares in the company.

Secondly, there is also a violation of Section 174 of the Companies Act, 1956, which says that quoram for a General meeting should be 2 and 7 for private Company and public Company as the case may be.
Profile Image

RG - A Helping Hand

Profile Image

RG - A Helping Hand (Expert)
24 November 2011 Agree with expert.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details