ACtE08 · Chapter 8Demo2 · Set 2🏛️ Past Licensure QuestionID: 5780679e
Under the Nepal Companies Act, 2063, what are the minimum and maximum numbers of shareholders required for a Public Limited Company?
Under the Nepal Companies Act, 2063, what are the minimum and maximum numbers of shareholders required for a Public Limited Company?
Multiple Choice Options
- A✓ Correct Option
7 and no upper limit
- B
3 and 25
- C
2 and 500
- D
5 and 100
Detailed Technical Solution & Explanation
According to Section 3 of the Nepal Companies Act, 2063:
•
A Public Limited Company must have a minimum of 7 promoters/shareholders to incorporate.
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There is no upper limit on the maximum number of shareholders a public company can have, allowing shares to be widely distributed to the general public via initial public offerings (IPOs).
Option Analysis:
•
Option A (7 and no upper limit): Correct; statutory threshold established under the Nepal Companies Act.
•
Option B (3 and 25): Incorrect; arbitrary numbers.
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Option C (2 and 500): Incorrect; Indian Companies Act provisions for private companies.
•
Option D (5 and 100): Incorrect.
Reference: Demo2 · Set 2NEC Licensure Syllabus