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The following statements relate to a public company.
1 Its shares must be offered to the public
2 It must have a minimum of 50,000 members
3 It must have a minimum nominal capital of £50,000 in order to trade
4 Its shares must be listed on a recognised stock exchange
Which of the following gives the correct position?
A 1, 3 and 4
B 1, 2 and 3
C 1, 2, 3 and 4
D 3 onlyIs the answer A or D?
I too opt for D. Looking at the options (poor question!) statement 3 MUST be correct. So all we now need to do is consider statement 1. If that too is correct, then we ned to consider statements 2 and 3.
So, statement 1. Clearly incorrect – a public company may offer its shares to the public, but is not required to. So, if statement 1 is incorrect, that nullifies options A, B and C
And that leaves option D as the correct one
OK?
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