Fewer than minimum numbers

Question 1

What are the minimum number of members required for a private and a public company?

Answer 1

Concepts:
Private Company: Minimum two members (excluding single-member companies).
Public Company: Minimum three members.
Mnemonic: “P.T.” (Private: Two, Public: Three)

Question 2

What are the consequences of a company operating for more than 180 days with fewer than the minimum number of members?

Answer 2

Concepts:
Member Liability: Each member who is aware of the situation becomes personally liable for the company’s debts incurred during that period.
Joint and Several Liability: Members can be sued individually for the full amount of the debts.
Mnemonic: “M.L.J.S.” (Member Liability, Joint and Several)