A private limited company limits the number of members to

All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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81.

A private limited company limits the number of members to

A: 30

B: 50

C: 40

D: 150

The answer is: B

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Explanation

The correct option is B: 50.

This is because according to the Companies Act, 1956, which was the previous law governing private limited companies in India, the maximum number of members in a private company was limited to 50. However, this limit was increased to 200 by the Companies Act, 2013, which is the current law regulating private limited companies in India.

Therefore, option B is correct only if the question refers to the old law, and not the new law. If the question refers to the new law, then none of the options are correct, and the answer should be 200.