ExpertMedium1 markMultiple Choice
The formation and constitution of business organisationsSection ASyllabus DCorporate and Business Law
ACCA · Question 33 · The formation and constitution of business organisations
What is the minimum number of members (shareholders) required to form a public limited company (PLC) under the Companies Act 2006?
What is the minimum number of members (shareholders) required to form a public limited company (PLC) under the Companies Act 2006?
Answer options:
A.
1
B.
2
C.
7
D.
50
How to approach this question
Recall the changes made by the Companies Act 2006 regarding single-member companies.
Full Answer
A.1✓ Correct
Under the Companies Act 2006, the requirement for a public company to have a minimum of two members was abolished. Both private and public companies can now be formed with a single member.
Common mistakes
Relying on outdated law (pre-2006) which required PLCs to have at least two members.
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