Celebrate Freedom with 20% OFF on CAclubindia Pro Subscription. Use Code: FREEDOM20

No. of members in a private company

Pvt ltd 718 views 3 replies

Deepali Garg

none

148 Points Joined April 2012

According to section 3(1)(iii)(b), no. of members in a private company shall not exceed 50.

Can a private company issue preference shares to any number of persons?

Replies (3)

Syed Fahad Quadri

Intermediate 2nd year student

25 Points Joined June 2012

no it cannot issue.

CS Vijay Daxini

At Practice

732 Points Joined March 2010

if number of member is limited by the companies act,1956 to 50 then u can not allot shres to ANY number of members...........OTHERS VIEW SOLICITED

Guest

Hi,

If the same person subscribes to both equity and preference shares, such person will be treated as one member and not two members provided all the particulars furnished by the person subscribing to both preference and equity share capital are same for the purpose of entering the details in the Register of Members as per section 150 of the Act.

Preference shareholders are members within the meaning of the Act and will be counted for the purpose of calculating 50 members under section 3(1)(iii) of the Act.

With Regards,

Neha