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Bpp study text f4 2013 glo says that minimum number of member in plc is ONE but opentuition curse note says that minium nuber of members in plc is TWO. Morover course note says that court can order compulsowy liquidation if number of members fall below TWO. on other hand flaschards says that minimum in plc is ONE. So who is right? on member or two members???
Below text is from study text bpp 2013
3.4.2 Minimum membership and directors
A public company must have a minimum of one member. This is the same as a private company.
However, unlike a private company it must have at least two directors. A private company must have just
one. Directors do not usually have liability for the company’s debts.The following extract is from the google search when I typed in “number of members in a UK public company”
“Number:- The type of company you are forming, (namely, a public company or alternatively an unlimited company) is required to have at least two members. If a public company (or an unlimited company) carries on business for more than 6 months with less than two members, a member during this period may be held personally liable for the company’s debts – section 24 of the Companies Act 1985. Furthermore, a public (or unlimited) company may be wound up by the court if at any time the number of members is reduced below two – section 122(1)(e) of the Insolvency Act 1986.
And what follows now is the google extract after typing in “number of members in a UK private company”
“Every limited company must have at least one shareholder.”
I believe that this second extract is related to “every limited company” as distinct from “every public limited company”
I can only apologise for the flash cards – I was probably misled by the BPP text!
But, so far as I am aware, and as confirmed by google search, the minimum number of members for a public company is 2
ok thank you, so course notes more reliable than BPP 🙂 i thought that such publisher do not make mistakes
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