Minimum number of director n member in public and private co

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 Please reply as soon as possible.
Dear All,
1- If, in Private company the number of director is less than the two, what is the penalty and default on that situation?

2- If, in Public company the number of member is less than Seven, than what is penalty and default on that situation?

please reply with section...

(can any default or penalty as per the companies act in above two situation)

Ajay Mishra

Ajay Mishra (Expert)
Follow

03 July 2012 Hi

Your query is categorize in two part:

1. What will be, if the no. of director go below the statutory limit:

If the director of the company go below the statutory limit, then Article 75 of Schedule I, Table A give remaining director power to appoint other director or directors to and to call a general meeting but not other purpose. On the basis of Article 75 you your one director appoint other director to comply quorum.

2. What will be, if the no. of member go below the statutory limit i.e. minimum 2 in case of private company and minimum 7 in case of public company:

Section 45 of the Companies Act, 1956 says that if the number of members falls below the statutory limit and the company carry on business for more than 6 moths while the number so reduced, , every person who is a member of the company during the time the company so carries on business after those 6 month and is aware of the fact, shall be severally liable.

Regards
CS Ajay Mishra

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2012 Thanks you sir, your kind reply...
I am agree with you, but one quarry is, if the remaining director is not want to appoint any other director, "Then what is the section is govern to compulsory appointment of director".

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