As per Companies Act, 1956 it is mandatory for a private company to have minimum of 2 members, what will happen if a private limited company can’t fulfill this requirement for a time period of say - more than six months?
CA Abhash Mishra
(Chartered Accountants)
(598 Points)
Replied 01 November 2008
COMPANY CAN NOT FORM WITHOUT FULFIL MINIMUM 2 MEMBERS LIMIT
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 01 November 2008
I mean 2 say after incorporation by abiding the legal requirements at a future date the private company falls short of this criteria, what will happen then?
sakshi taneja
(qualified ca n searching job)
(341 Points)
Replied 08 November 2008
AFTER SIX MONTHS THE COMPANY WILL AUTOMATICALY DISSOLVED IF THIS CRITERA IS NOT FULFILED.
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 08 November 2008
Hi
The reduction of number of members below the legal minimum is a ground for the winding up of the company.
Also Liability of member/s who are aware of this situation will be unlimited throughout this period.
Regards
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