Question

Which of the following is true for public and private company?

• A. Public company requires ₹ 1 lakh as minimum paid-up capital, while a private company requires ₹ 5 lakhs.
• B. There must be at least three directors in public company, while the minimum number of directors in private company must be two
• C. A public company requires minimum two members while a private company requires seven members
• D. There is maximum limit on number of members upto 200 in case of public company while there is no maximum limit in case of 'private company'.

Answer 1

Answer: (B)

There must be at least three directors in public company, while the minimum number of directors in private company must be two

Answer 2

The correct answer is (B) : There must be at least three directors in public company, while the minimum number of directors in private company must be two.