According to the Companies Act, 2013, in Private Limited Company, number of members are:

Question

Accepted Answer

The correct option is 4:
According to Section 2(68) of the Companies Act, 2013, the definition of a Private Limited Company fundamentally mandates the minimum and maximum number of members. The law states that a private company must have a minimum of two members to be legally formed, unless it is a One Person Company (OPC). Crucially, the section restricts the maximum number of members to two hundred (200). This ceiling of 200 members is a core distinguishing characteristic of a private company, separating it from a public company, and is a prerequisite for it to avail itself of the various exemptions and privileges provided under the Act.

The incorrect option is 1:
This option is incorrect primarily because of the maximum limit stated. Although a minimum of 1 member applies to a One Person Company (OPC), the general Private Limited Company requires a minimum of 2 members. The maximum limit of 100 is outdated and not the correct stipulation under the Companies Act, 2013. This limit was relevant under the old Companies Act, 1956, where the maximum was initially 50 and later amended. The current statutory maximum is unequivocally 200.

The incorrect option is 2:
This option is fundamentally incorrect regarding the maximum number of members. While the minimum of 2 is correct, the 'Maximum: Unlimited' is a defining feature of a **Public Limited Company**, not a Private Limited Company. A key requirement for a Private Limited Company is that its Articles of Association must restrict the maximum number of members to 200. Therefore, having an unlimited maximum membership would automatically violate the statutory definition of a private company.

The incorrect option is 3:
This option correctly identifies the minimum of 2 members, which applies to a standard Private Limited Company. However, the maximum limit of 5000 is an arbitrary figure that is legally incorrect. The maximum cap for members in a Private Limited Company is strictly 200 under the Companies Act, 2013. Companies must ensure their membership remains within this statutory limit; otherwise, they risk losing their private company status and its associated legal benefits.