The minimum number of share holders for joint stock companies is_______________

1. Analyze the question The question asks for the minimum number of shareholders (members) needed to form a joint stock company in Nigeria. The answer depends on the type of company.

2. Explain the concept Under the Companies and Allied Matters Act (CAMA) in Nigeria:

• Private limited company: minimum of 2 members/shareholders (the older Companies Act 1990 also allowed this, with a maximum of 50). CAMA 2020 later allowed a single-member company.
• Public limited company: minimum of 2 members under CAMA 1990, with no upper limit. Under the older British-style Companies Act, a public company needed 7.

So the figure of 7 comes from the older company law and is the traditional textbook answer for public companies, while 2 is the minimum under Nigerian law for a private company.

3. Solution Check each option:

• A. 4: not a legal minimum for any type of company.
• B. 2: the minimum under Nigerian law (CAMA) for forming a company.
• C. 7: the old textbook minimum for a public company only.
• D. 3: not a legal requirement.

The question says "joint stock companies" in general, so it asks for the lowest number that applies, which is the minimum required to form a company at all. That is 2.

4. Answer The correct option is B. 2.

Note that some older textbooks give 7 for public companies, so if you see a question that says "public limited company" specifically, check which law or textbook the question follows. For this wording, the answer is 2.

5. Exam tip Remember: "Private and public both start at 2 in Nigeria. The old 7 is only for public companies under old British law." Also remember that a private company has a maximum of 50 members, while a public company has no maximum.