Minimum number of members

RULES FOR COUNTING PERSONS

Ø     Both natural and artificial person is counted as 1 person

·        Individual (natural person)     =     1 person

·        Company (artificial person)   =      1 person

Ø     Partnership of 6 persons is counted as 6 persons.

Minimum number of members

         

PUBLIC COMPANY

·        Listed company (7 members)

·        Unlisted company (3 members)

PRIVATE COMPANY

·        Single Member Company (1 member)

·        Other private company (2 members)

Consequences of members falling below minimum

·        Company loses its existence ,

·        Every member becomes

o       Severally liable for the payments of the whole debt contracts, &

o       Can be sued without joinder in suit of any other member.