What is the minimum number of members (shareholders) required to form a public limited company (PLC) under the Companies Act 2006?

Answer options:

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Relying on outdated law (pre-2006) which required PLCs to have at least two members.

Question 32 All questions Question 34

Practice the full ACCA LW — Corporate and Business Law Practice Exam 2

60 questions · hints · full answers · grading

More questions from this exam

Q01A dispute has arisen between 'AquaHarvest Ltd' and a supplier over a £150,000 contract for specia...Medium Q02A judge is interpreting a 19th-century statute regarding 'carriages on the highway' to determine ...Medium Q03Under the Human Rights Act 1998, certain rights can be claimed by corporate entities as well as n...Medium Q04'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can pr...Easy Q05'EcoVertical Farms Ltd' leases a warehouse from a landlord. During a severe economic downturn, th...Hard

View all 60 questions →