07 March 2011
A public ltd co had been carrying on its business with just 2 members later with in 6 months it increased it to 9 by "TRANSFERRING SOME SHARES FROM THE EXISTING SHAREHOLDERS TO THE NEW MEMBERS"
So It sufficient compliance as regards number of members of a public ltd .co i.e Can the numbers of members be increased by just simply transferring the shares( For Consideration).
08 March 2011
As per Section 45 a public company must have a minimum of 7 members, so in the first instance I wonder how it had run with only 2 members so far. Probably it was converted from a private to a public limited company.
As regards increase in number of members by transfer of shares, it is perfectly in order.
CAclubindia
