ACtE08 · Chapter 8Demo2 · Set 2🏛️ Past Licensure QuestionID: 637b9468
Under the Nepal Companies Act, 2063 (with subsequent amendments), what are the minimum and maximum allowable numbers of shareholders in a Private Limited Company?
Under the Nepal Companies Act, 2063 (with subsequent amendments), what are the minimum and maximum allowable numbers of shareholders in a Private Limited Company?
Multiple Choice Options
- A
1 and 50
- B
2 and 50
- C✓ Correct Option
1 and 101
- D
5 and 50
Detailed Technical Solution & Explanation
Under the Companies Act of Nepal, 2063 (as amended by the Companies (First Amendment) Act, 2074):
•
A Private Limited Company can be incorporated by a minimum of 1 shareholder (single-person company) and can have a maximum of 101 shareholders.
•
(Prior to the 2074 amendment, the maximum ceiling was 50 shareholders, but was amended to 101 to encourage small enterprise growth).
Option Analysis:
•
Option A (1 and 50): Incorrect; reflects the old pre-amendment limit.
•
Option B (2 and 50): Incorrect; traditional partnership threshold.
•
Option C (1 and 101): Correct; statutory limits established by current Nepalese company law.
•
Option D (5 and 50): Incorrect.
Reference: Demo2 · Set 2NEC Licensure Syllabus