Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Private company Members

Save Share

This query is : Open

MANOJ Na (Querist)

19 September 2017 If shares held by directors, are directors considered in calculating the members of the private company

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

25 September 2017 YES Directors are considered while calculating members.

Shrijay Sheth

Shrijay Sheth (Expert)

26 September 2017 One person can act as director as well as member in the company simultaneously and also act in different capacity at the same time. Hence, where a single person is both director and member in the company, the director will also be considered for calculation of number of members.

However, in case of Private Company, where the director holds the shares in the capacity of his/her employment in the company, the stated person will not be counted for calculating the threshold limit of 200 members. (As laid down under proviso to Section 2(68) - definition of Private Limited Company)

Message likes : 1 times

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