CA Foundation · Business Laws · The Companies Act, 2013

Ananya Pvt Ltd has 150 members, of whom 40 are employees holding shares issued to them while in employment. Another 10 are former employees who became members while employed and continue to hold shares. Ananya's spouse and Ananya hold shares jointly as one member. For counting the maximum number of members of this private company, which statement is correct?

Joint holders are treated as one member, and persons who are employees, or were employees when they became members and continue to hold shares, are excluded from the count of 200. So both current and former employee shareholders do not count toward the limit.

1. AJoint holders are treated as a single member, and current and ex-employee members are excluded from the count of 200Correct
2. BJoint holders are counted separately, and employees are included
3. COnly current employee members are excluded, ex-employees are counted
4. DEmployees are excluded but joint holders are each counted as separate members