State the consequences in each of the following cases giving reasons for your answers: A Private Company has 210 members in total out of which 10 are the employees of the company. Will your answer differ, if 5 of these e

Section 2(68) of the Companies Act, 2013 provides that private companies can have a maximum of 200 members (except for One Person Companies). This number does not include present employees and former employees who were members of the company while in that employment and have continued to be members after the employment has ceased. Moreover, where two or more persons hold one or more shares in a company jointly, they shall be treated as a single member. Hence, the company is within the maximum limit of 200 members. The answer would have remained same even if 5 employees leave the employment as threshold limit of 200 persons for private company does not take into account former employees who were members of the company while in employment and continued to be member even after employment ceased.